Who needs to file a FBAR?
Anyone who is:
- an American citizen
- a Green Card holder
- a partner or financial shareholder of an American company
- an entrepreneur or investor in real estate in America
….and lives in Israel and has holdings that are over $10,000 in a foreign bank outside of U.S. borders.
What is an FBAR and why is it important to file one?
Reporting to the American government on any amount above $10,000 held in combined foreign banks is done on Fincen Form 114 known as FBAR – Report of Foreign Bank and Financial Accounts.
It must be done:
- In a comprehensive and complete manner (leaving no income missing)
- Continuously – every year (without forgetting)!
- Exactly on time by April 15 with and automatic extension until October 15
- Failure to file the FBAR can bring heavy fines up to 50% of the value of the assets in your accounts!
Can I file the FBAR myself?
You can file it yourself and we even provide a detailed guide to assist you! Click here to download the GUIDE TO FILING THE FBAR.
What is the advantage of having U.S. Benefits do it for me?
The experts at U.S. Benefits will complete and submit the FBAR accurately, for a very reasonable cost and on time! In addition, we will follow through to see that it is received in the U.S. and …
- implement a comprehensive check to locate all your funds – for a complete and correct report
- collect your information from your bank statements (if needed)
- assist in completing Form 1040 (annual U.S. tax report for an American citizen)
- if needed, we will also submit forms from previous years that were not reported
- As part of the service, a leading American accountant, who has many years of experience and is extensively familiar with the laws and current updates of the laws, provides advice throughout the process
In general, what kinds of assets need to be reported annually to the U.S. Government?
- Funds that are in a foreign account outside of the U.S.!
- Pension funds, providential funds and in-service training funds
- Salaries of salaried employees
- Profits of independent workers
- Foreign investments – financial or real estate
- Israeli bank accounts, interest, dividends, shares etc.
- Income from apartment rental
- Special Stipends – e.g. Bituach Leumi
- Any income from property in the U.S. or outside of the U.S.
- Income from 1099, 1098, and B1099
- And more….
What if I didn’t know I had to file all these reports?
As far as the U.S. government is concerned “Not knowing” is not an excuse!
In recent years, the U.S. government is working in conjunction with Israeli banks, who are meticulously locating U.S. citizens living in Israel, to have them sign various forms, including W9, which explains very clearly the obligation of the banks to report details of American citizens who are their customers (FACTA).
The fines for not reporting on time using the FBAR form can accrue to 50% of the total amount in your various accounts!
Do you want to do it on you own?
Enter your details to download the full free guide to filing out the FBAR