We are often asked by US expatriates and US citizens with foreign abroad about the amount of the bank account balance that triggers the need to report it on an IRS Foreign Bank Account Report or FBAR. Technically speaking, it’s not the amount in any given account, but if the aggregate total of all foreign accounts and assets exceeds $10,000 in value.
This figure relates to the value at any point in time based upon the sum total of all accounts, as well as the equity or interest in foreign real estate or an offshore company. It could only exceed the threshold for a day, and technically it would meet the test and an FBAR should be filed.
If there is any question in your mind about whether you should be filing an FBAR relating to your foreign accounts you should simply call 800-866-631-3470 for a free consultation. If you are an American citizen abroad as an expatriate, have offshore accounts or interests, or are a resident alien you are required to submit FBARs. The penalties and interest associated with a failure to file are oppressive, and in some cases can result in criminal charges. One phone call will help you to better understand your unique situation.
