FBAR and Foreign Assets Reporting
Investing in a company outside the United States brings reporting obligations. We file your FBAR (FinCEN Form 114) and help with Form 8938, the other foreign assets reporting compliance.
Investing in companies outside the US
Many investors consider a foreign company as an investment option but hold back because of the reporting and tax hassle it attracts. We cover you on this front.
What is FBAR and who needs to file
The Foreign Bank Account Report (FBAR) refers to FinCEN Form 114, Report of Foreign Bank and Financial Accounts. US citizens, residents, companies, partnerships, limited liability companies (LLCs), trusts and estates that have ownership of, or control over, foreign accounts with a cumulative value above USD 10,000 at any time during the year are required to file an FBAR.
Form 8938: foreign assets reporting apart from FBAR
Form 8938, Statement of Specified Foreign Financial Assets, is another compliance for holders of foreign assets. Its reporting thresholds depend on where you reside and whether you file jointly or individually.
For people residing in the US:
- Unmarried, or married filing individually: total value of assets above USD 50,000 on the last day of the year, or above USD 75,000 at any time during the year.
- Married filing jointly: total value of assets above USD 100,000 on the last day of the year, or above USD 150,000 at any time during the year.
Form 8938 thresholds for people residing outside the US
- Unmarried, or married filing individually: total value of assets above USD 200,000 on the last day of the year, or above USD 300,000 at any time during the year.
- Married filing jointly: total value of assets above USD 400,000 on the last day of the year, or above USD 600,000 at any time during the year.
Foreign assets to be reported
Under FBAR: an interest in, or authority over, at least one financial account situated in a foreign country.
Under Form 8938: the financial accounts maintained with the foreign financial institution you invested with, such as savings, deposit, checking and brokerage accounts. You also need to report any interest in a foreign entity, such as shares or securities of a foreign company, a contract with a foreign company, or an interest in a foreign estate.
US and Indian expertise in one firm
We primarily deal with US–India business, tax and regulatory issues for high net worth individuals (HNWIs), startups and incumbent businesses.
FBAR — frequently asked questions
The Foreign Bank Account Report (FBAR) is FinCEN Form 114, Report of Foreign Bank and Financial Accounts.
US citizens, residents, companies, partnerships, LLCs, trusts and estates that own or control foreign accounts with a cumulative value above USD 10,000 at any time during the year.
No. Form 8938, Statement of Specified Foreign Financial Assets, is a separate compliance for holders of foreign assets, with its own reporting thresholds that depend on where you reside and whether you file jointly or individually.
Financial accounts with the foreign financial institution you invested with — savings, deposit, checking and brokerage accounts — and any interest in a foreign entity, such as shares or securities of a foreign company or an interest in a foreign estate.
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