Foreign bank accounts - HELP!

[FEDUKE404]

Client has bank accounts (CDs) and a separate investment account in an Asian country.

The income from the accounts (interest and capital gains) will be enough to warrant a "response" at the bottom of Schedule B.

Based upon a preliminary, and very quick, first look it appears the total funds in the accounts are nearing but less than $10k.

1 - What am I up against for keeping the IRS happy? Is there a "line in the sand" ($ amounts) where the reporting goes from an inconvenience to a complete PITA???

2 - How do I deal with currency conversions, namely how "often" do I have to calculate the US$ amounts involved based upon currency fluctuations (annual amount, monthly amount, or what....)?? The stock sale information already has a "US$" summary for the capital gains events.

2 - Does the extra paperwork, if any, come after the 04/18 deadline for the tax returns? It's already going to be a very close call as to whether an extension is necessary for the underlying tax returns.

3 - How much time is going to be involved, and what is a reasonable price to charge for this "extra" work?

Thanks in advance for any guidance.

FE

[Koss]

Due Date for FBAR

You have until June 30 to file Form TD F 90-22.1, regardless of whether you file an extension for the tax return.

The due date for the FBAR form cannot be extended.

The IRS has published something called draft final instructions for the form. Here's the link:

http://www.irs.gov/pub/irs-utl/fbar_instructions_final.pdf

I don't understand how something can be a draft and also be final. That must be something that only federal agents are allowed to know.

In Notice 2011-31, the IRS explained that the "draft final" instructions were published on March 21, 2011, and that the "final final" instructions were published on March 26, 2011, but it doesn't give a link to the "final final" instructions. The notice says that

There is no substantive difference between the text of the posted instructions (titled DRAFT Final Instructions) and the instructions that accompany the revised FBAR form, although the format of the instructions has changed.

So maybe the committee chose a different font for the "final final" instructions. LMAO

Good luck on this one. I'd probably charge an extra $75 or $100 for this kind of work.

Maybe charge enough to get the client to realize that it's not worth having bank accounts in foreign countries.

Put him through a really intensive interview. Maybe hire an actor to sit in the room with you, wearing a dark suit, with dark glasses, and a bulge under his jacket, and ask your client about ties to Al Qaida and Ghadafi.

BMK

[Koss]

Acronyms

Did you notice that when U get into the FBAR, you get something that is FUBAR?

BMK

[joanmcq]

Oh heck yes! I do NOT prepare the FBAR. I advise my clients of the need to prepare if necessary, and will send them the form or the link on the IRS website. Too much liability if you get the numbers wrong. Its not my account!

[JohnH]

Double Ditto!

I'll fill in their name, address, and birthdate.
Then it's off to the client with a pre-addressed envelope & instructions.

Strictly a courtesy - I'll never charge for a FBAR and I'll never enter a number on one of those things. Too many risks...

Also, if you rearrange the existing letters, you can get BARF. Which is what I feel like doing when I think about this form.

[JG EA]

Client has bank accounts (CDs) and a separate investment account in an Asian country.

The income from the accounts (interest and capital gains) will be enough to warrant a "response" at the bottom of Schedule B.

Based upon a preliminary, and very quick, first look it appears the total funds in the accounts are nearing but less than $10k.

1 - What am I up against for keeping the IRS happy? Is there a "line in the sand" ($ amounts) where the reporting goes from an inconvenience to a complete PITA???

2 - How do I deal with currency conversions, namely how "often" do I have to calculate the US$ amounts involved based upon currency fluctuations (annual amount, monthly amount, or what....)?? The stock sale information already has a "US$" summary for the capital gains events.

2 - Does the extra paperwork, if any, come after the 04/18 deadline for the tax returns? It's already going to be a very close call as to whether an extension is necessary for the underlying tax returns.

3 - How much time is going to be involved, and what is a reasonable price to charge for this "extra" work?

Thanks in advance for any guidance.

FE

1. $10,000 or more of principal at the highest point of principal in the year.
2. I get an average for the year or an amount for the highest point in the year. You report USD on the TD form.
2b. Already answered.
3. If the client brings in the bank account statement with numbers and addresses, it takes all of 10 minutes. CFS has the TD forms if you have CFS. But filling it out by hand is pretty straight forward. I don't charge very much, in fact so little that I'm not telling you. It is just part of my overall package.