Q: What counts as a "foreign account" under FBAR rules?

Think of a foreign account like any piggy bank you’ve got stashed overseas—except instead of coins, it’s actual bank accounts, investments, or insurance with cash value. If the account lives in a bank or financial place outside the U.S., it probably counts. That means not just checking or savings, but also mutual funds, retirement accounts, or certain life insurance policies. If a bank abroad holds it, the IRS wants to know about it. Yes, even the sleepy account you forgot existed.

Q: Do I need to be making money to worry about FBAR?

Nope. How much you earn doesn’t matter at all here. What matters is how much is sitting in your foreign accounts. If the total combined value of all your foreign accounts hits more than $10,000 at any moment in the year—just for a second—you need to file. Doesn’t matter if the accounts didn’t make a dime or haven’t been touched since 2004. If they add up to over ten grand, you’ve got to report them.

Q: Is FBAR the same as FATCA? Or do I need to file both?

FBAR and FATCA—two fancy acronyms, two different filings. FBAR is all about where your money is: it looks at the location of your foreign accounts. FATCA , on the other hand, is more about what you own: it’s filed with your tax return (Form 8938) and reports foreign financial assets, not just bank accounts. Some people need to file one. Others? Both. If you’re not sure, better check. Filing the wrong one—or worse, skipping both—could mean big trouble.

Question 1

What counts as a "foreign account" under FBAR rules?

Accepted Answer

Think of a foreign account like any piggy bank you’ve got stashed overseas—except instead of coins, it’s actual bank accounts, investments, or insurance with cash value. If the account lives in a bank or financial place outside the U.S., it probably counts. That means not just checking or savings, but also mutual funds, retirement accounts, or certain life insurance policies. If a bank abroad holds it, the IRS wants to know about it. Yes, even the sleepy account you forgot existed.

Question 2

Do I need to be making money to worry about FBAR?

Accepted Answer

Nope. How much you earn doesn’t matter at all here. What matters is how much is sitting in your foreign accounts. If the total combined value of all your foreign accounts hits more than $10,000 at any moment in the year—just for a second—you need to file. Doesn’t matter if the accounts didn’t make a dime or haven’t been touched since 2004. If they add up to over ten grand, you’ve got to report them.

Question 3

I’m a dual citizen/green card holder. Do I need to file FBAR?

Accepted Answer

Yes, 100%. If you’re a U.S. citizen, have dual citizenship, or hold a green card—even if you haven’t lived in the U.S. for years—you’re still on the hook for FBAR. The rule is simple: if you have money in a foreign account, or even just signing power over it (like you’re on someone else’s account), you’ve got to file. Where you live doesn’t matter. Uncle Sam still wants to know.

Question 4

What if I forgot to file in past years?

Accepted Answer

Hey, it happens. The important thing is to act fast. If you missed a filing, the IRS has some programs to help people catch up—like voluntary disclosure or streamlined filing. But don’t sit on it. If they decide you meant to skip it, you could be looking at big penalties or even criminal charges. Bottom line? Talk to a tax pro, preferably one who knows international stuff. Don’t try to DIY your way out of this one.

Question 5

Is FBAR the same as FATCA? Or do I need to file both?

Accepted Answer

FBAR and FATCA—two fancy acronyms, two different filings. FBAR is all about where your money is: it looks at the location of your foreign accounts. FATCA, on the other hand, is more about what you own: it’s filed with your tax return (Form 8938) and reports foreign financial assets, not just bank accounts. Some people need to file one. Others? Both. If you’re not sure, better check. Filing the wrong one—or worse, skipping both—could mean big trouble.

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