FBAR reporting question

[AccTaxMan]

Taxpayer has an oversea account. The money is put into CD. Whenever a CD matures, the oversea bank renews the CD and assign a new account number to it. As for this taxpayer, a CD of $30,000 matured and was renewed in May 2013. So before May 2013, the $30,000 was under the old account number. And then after May 2013, the $30,000 was under a new account number.

When the taxpayer files the FinCEN Form 114, does he report the $30,000 twice under the two different account numbers? If that's the case, it would appear on his FinCEN Form 114 that he had $60,000 in his oversea account while he only had $30,000.

[FEDUKE404]

Need to list accounts on FinCEN Form 114

CORRECTION

You WILL need to complete Part II and/or Part III if there are less than 25 accounts involved.

As for the original question, I would probably lean toward listing two accounts, as the FBAR rules state the following: "FinCEN Form 114 to cover any foreign assets with a total value >$10k USD at any time during the tax year."

You should also be sure the client does not have to deal with any Form 8938, which would accompany his Form 1040.

Oh yes: Have fun with the mandatory efiling of the FinCEN Form 114 !!

FE