FBAR VIDEO by Philip Stein
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1. Does a Kupat Gemel account have to be included on the FBAR filing?
A. All Kupat Gemel accounts should be reported under Part II “Information on Financial Accounts Owned Separately”. On Line 16 where it asks for type of account, you should check the box that says “Other” and enter the word “pension” for the description.
2. Does a Keren Hishtalmut account have to be included on the FBAR filing?
A. All Keren Hishtalmut accounts should be reported under Part II “Information on Financial Accounts Owned Separately”. On Line 16 where it asks for type of account, you should check the box that says “Other” and enter the word “pension” for the description.
3. Does my Israeli pension need to be reported on the FBAR filing?
A. It depends on the type of pension account. If you have the ability to take out the money in the pension account presently, then the current redeemable value of the pension must be reported on the FBAR under Part II “Information on Financial Accounts Owned Separately”). On Line 16 where it asks for type of account, you should check the box that says “Other” and enter the word “pension” for the description.
B. On the other hand, if when you retire you will just be entitled to receive a percentage of your monthly salary from the pension company or your former employer it does not have to be reported on the FBAR form.
4. Does my insurance policy have to be reported on the FBAR form?
A. If the insurance policy has a cash surrender option (meaning that you can redeem the policy for cash) the value that you can get for the policy as of December 31st should be reported on the FBAR under Part II “Information on Financial Accounts Owned Separately”). On Line 16 where it asks for type of account, you should check the box that says “Other” and enter the word “insurance” for the description.
5. If both my spouse and I have accounts in a Kupat Gemel, Keren Hishtalmut, insurance or pension funds, do we have to file an FBAR for each of us?
A.Yes. Each one of you must file a separate FBAR to report your individually owned funds.
6. If both my spouse and I had to file separate FBAR forms to report individual accounts, do we have to include our jointly owned accounts on both FBAR forms or is it enough to report it on one form?
A. The jointly owned accounts should be reported on both FBAR forms.
7. If I own a foreign (i.e. Israeli) company and that company has an account in a foreign (i.e. Israeli) bank, on which section of the form do I report it?
A. A person who is more than a 50% owner of a foreign company reports his interest in the foreign Company’s foreign bank account in Part II “Information on Financial Accounts Owned Separately”.
8. If I am reporting the account of my more than 50% owned foreign company, should I put my name or the company’s name on the line where it asks for the name of the owner?
A.You should put your name and in parenthesis you should put the name of the company.
9. What is the due date for filing the FBAR?
A. The FBAR must be received by the Department of the Treasury by June 30th. There is no extension for filing this form.
10. What if my name is on an account from which I do not benefit or the funds are not for my use?
A. One is considered to have financial interest in an account if his name is listed on the account. It should be reported in Part III as joint account.
11. In which currency is the account value declared?
A. The account value should be declared in U.S. dollars.
12. Which exchange rate should be used to convert my account value to U.S. dollars?
A. The year – end exchange rate should be used. The exchange rate from NIS to U.S. dollars for 2012 is 3.73
13. Does the value of real estate property owned in a foreign country need to be included in the Fbar?
A: Only non US financial accounts are to be included in the FBAR. Real estate should not be included.
14. To what address should I mail the FBAR?
A. The regular postal address is:
U.S. Department of the Treasury
PO Box 32621
Detroit, MI 48232-0621
The fedEx address is:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail Room, 4th Floor
985 Michigan Avenue, Detroit, MI 48226
The phone number to use is (313) 234-1062
15. How do I verify that my FBAR was filed?
A. Ninety days after the date of filing, the filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 1-866 270-0733 and selecting option 1. Up to five documents may be verified over the phone. There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period. There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page. Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
P.O. Box 32063
Detroit, MI 48232
- The account value to be used is the maximum value of the account during the calendar year based on the statements you receive. If you cannot ascertain the highest value then you can rely on statements that are accessible to you .
- For accounts holding securities (stocks or bonds), the maximum value of the account should be taken from the last day of the year plus any withdrawals taken during the year.
- When asked to list the number of joint owners on the account, do not include the filer in the count (i.e. if the account is held by the filer and his spouse the number of joint owners is one.)
- If there is more than one joint owner, enter the information of the primary joint owner in Part III. The primary joint owner will be the first name listed on the account other than you.
- If the joint owner is the spouse, write the spouse’s last name followed by the word “spouse” in parenthesis on line 26.