Clients are married filing jointly. They do not own foreign bank account jointly.
Total balances of their foreign bank accounts are over $10,000, but, each of their separate accounts are under $10,000. Do they need to file FBAR in 2018?
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The threshold of $10,000 is determined at the individual level for each US person. So long as the spouses don't have signatory authority over the other's separate account, neither of them should be required to file an FBAR.
As you are probably already aware, the threshold of $10,000 is the maximum aggregate balance at any point during the year, taking into account the Treasury Department's published exchange rates.
The threshold of $10,000 is determined at the individual level for each US person. So long as the spouses don't have signatory authority over the other's separate account, neither of them should be required to file an FBAR.
As you are probably already aware, the threshold of $10,000 is the maximum aggregate balance at any point during the year, taking into account the Treasury Department's published exchange rates.
Wondering on different scenarios
- both spouses have individual foreign accounts (not joint) and have more than 10000 individually : both file fbar
- both spouse have individual foreign accounts (not joint) and one has more than 10000 other has less than 10000 : Does it mean only one spouse who has more than 10000 files?
- both have individual foreign accounts and both have less than 10000 individually however total might be more than 10000 : Assume none files?
- both have individual foreign accounts and both have less than 10000 with total being less than 10000 as well: No one files
Wish they were more clear around this, as well as congress updates the regs to increase the limit to be same as 8938 - its 2020 not 1970s (10K in 1970 will be like 100K or more)
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