A COMPLETE GUIDE TO FILING YOUR FBAR

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1 A COMPLETE GUIDE TO FILING YOUR FBAR What is the FBAR and Who needs to file one? FBAR is the acronym for FOREIGN BANK ACCOUNT REPORT which refers to a report of financial accounts existing outside of the USA. The law requires every US citizen to submit reports of his accounts outside the US even if he never visited the US. The requirement takes effect if the total assets in all one's foreign accounts equals $10,000 or more. It doesn't matter if there is $10,000 or more in one account or in many accounts with only small amounts in each. If the total of one's accounts is $10,000 or more, the report must be filed. For additional information contact us at info@usbenefits4u.com We are happy to answer questions with no obligation. What financial accounts are included in the law? Bank accounts, stocks, securities, provident funds, various life insurance policies, trusts, education funds, pension plans etc. This includes all accounts in the name of an American citizen individually or jointly and/ or accounts where an American citizen has signature rights (power of attorney). When does the report have to be submitted? From the beginning of each calendar year and by April 15 with an extension allowed for US citizens who live outside of the US until October 15. What is the purpose of this Guide? To allow any US citizen to submit the FBAR report on his own without any expense. 1

2 A LITTLE ABOUT U.S. BENEFITS Peace of mind at extremely reasonable prices Our vision is to assist U.S. citizens living in Israel, in submitting any reports required by U.S. law (tax returns, FBAR etc.) assist with Embassy visits, tax refunds, back returns, tax advice, and help with obtaining citizenship for children born in Israel. We submit our customer's documents in a timely fashion, with information that is 100% accurate all at a reasonable price. U.S. Benefits has been a leading provider of services to American citizens living in Israel since We have served over 2000 satisfied customers, who continue to recommend us to family and friends. We are happy to provide references on request. U.S. Benefits views the success of our clients as our purpose. We are always updated with the current regulations and always create a package of services suited personally to the individual needs of the client. This is how U.S. Benefits makes sure its clients to attain the maximum benefits to which they are entitled. Our ultimate goal is that our clients feel that they are represented in a professional and efficient manner to the U.S. government, so that they will not have to pay unnecessary fines, interest or taxes. OUR VALUES Reliability Our office staff is reliable and works with absolute integrity; we consider the client s benefit and success throughout the entire process. Efficiency our 14 years of have given us lots of experience with all the relevant offices of the U.S. government. Whether in matters of citizenship, reports, pension payments etc, our expertise and professionalism always pay off for our customers. Customer Service the product that we offer to the client goes well beyond the service of completing forms, we closely accompany our customers in all areas of communication with the US government. Calm we provide our clients with peace of mind. Clients know that reports will be completed on time and in accordance with the law. In emergency situations, we can provide express service. 2

3 Stage One Preparation of Documents 1. List the names of banks where you have accounts. 2. List the names of funds that you have pension, provident etc. if you do not know which funds you have, check online to locate your accounts - / 3. Obtain an end-of-the year financial balances report and bank statements for the full year from the bank. 4. Obtain annual reports from the various funds for all policies this can be obtained via the websites of the various funds. 5. In order to submit a proper report, be sure not to omit a single financial account and report on everything. 6. Check the dollar rate of the exchange for preparing FBAR at the link small-businesses-self-employed/treasury-reporting-rates-of-exchange-as-of-december Stage Two Locating the Amount within the Forms Find the highest amount that you had in each financial account. 1. In a checking (current) account review of the bank statements and mark the highest balance (see example). 3

4 2. Check the final annual bank report to see if you have savings deposits etc. Pay attention: Is this is the highest amount in the year or if you had more funds during the course of the year which you withdrew? You can see this via the bank statements; mark the highest amounts in the savings deposits (see example). 3. In certificate accounts and stocks request quarterly reports from the bank and mark the highest amount (see example). 4

5 4. In most funds, the highest amount is the at the end of the year (see example). Pay attention: if you withdrew sums from the funds during the year to mark the highest amount (see example). 5

6 Stage Three Completing the FBAR Form Go to the link: Select PDF Form and click the Start Now button. A pdf form will open. On page 1 give your file a descriptive name so you can refer to it later. 6

7 Page 2: Part I Filer information including: social security number, date of birth, name and address etc. 7

8 Page 3: PART II Enter all your bank details for accounts that are NOT jointly owned. Example of Form: 8

9 Page 4: Part III Similar to Page 2 but for joint accounts. See example below: Lines are identical to PART II Line 24 fill in the number of additional names on the account 9

10 Lines details of the joint owner of the account Page 5: Part IV For accounts where you have signature rights but have no profits from the account 10

11 Page 6: Part V For an account where you have signature rights and profit from the account such as a company account. It is advisable to consult with a professional for details about how to file for these types of accounts. 11

12 Page 7: Signature Page Line 44 mark and go to the beginning of the form and click on SIGN THE FORM and save the form to your computer. Stage Four Sending the Form Return to the link Click on the button Fill in your , first name and last name, attach the file and send SUBMIT. Keep track of the for a reply regarding sending the form. Very Important! Save all related documents in an accessible place so that you can always show the source of information on the submitted form. Saving a copy of the report will also facilitate preparation of next year s report. 12

13 FREQUENTLY ASKED QUESTIONS 1. My balance only exceeded $10,000 for a few days because I received a mortgage. Am I required to file? 2. I moved my bank account to a different bank in the middle of the year. Which account do I include in the FBAR? 3. I have an annuity policy. Do I have to file for this? 4. My pension account is closed and I cannot draw from it until I reach retirement age. Am I required to file? 5. I have a few accounts each with a small amount of money. The total sum of all the accounts may reach $10,000 for a few days during the course of the year. Am I required to file? 6. I took a loan. Am I required to file? 7. I am always in minus at the bank but have a high balance in pension. Do I subtract the minus from the pension amount? 8. I do not have a Social Security Number only an American passport. Am I required to file? 9. Hardly anyone knows that I am American. I was born in Israel and was registered as an American citizen. Even my passport has expired for some time and I have no connection to the American government. Why do I have to start filing these reports? 10. From what age to what age must I file the report? You may send these and any additional questions to info@usbenefits4u.com and we will be glad to reply. BEFORE WE LEAVE We hope this guide to filing the FBAR has been useful and that you have succeeded in saving the cost of having us fill out the form for you! Feel free to pass it on to others. For any questions, please contact us and we will be glad to serve you. If you want us to prepare the report for you, call or us at: info@usbenefits4u.com Visit our website: 13