FBAR FAQ

Does a Kupat Gemel account have to be included on the FBAR filing?

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.

Does a Keren Hishtalmut account have to be included on the FBAR filing?

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.

Does my Israeli pension need to be reported on the FBAR filing?

Yes, all pension accounts should be reportable on the FBAR. 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.

Does my insurance policy have to be reported on the FBAR form?

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 “pension” for the description.

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 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”.

What is the due date for filing the FBAR?

The FBAR due date has recently changed, per the latest regulations the FBAR is due on April 15th. This due date is automatically extended until October 15th.

What if my name is on an account from which I do not benefit or the funds are not for my use?

You are considered to have a financial interest in an account if your name is listed on the account. It should be reported in Part III as joint account.

In which currency is the account value declared?

The account value should be declared in U.S. dollars.

Does the value of real estate property owned in a foreign country need to be included in the Fbar?

Only non U.S. financial accounts are to be included in the FBAR. Real estate should not be included.

NOTE: FBAR can only be electronically filed. See link to FinCen for those who would like to prepare it on their own.

Additional Tips:

  1. 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.
  2. For accounts holding securities (stocks or bonds), the maximum value of the account should be taken from the last day of the year, unless you are aware of a big variance during the year.
  3. 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.)
  4. 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.