FBAR- Foreign Bank Account Reporting (Form 114)
If you have in aggregate over $10,000 held in foreign bank or investment accounts, you have an annual requirement to file an FBAR form. When completing the FBAR form, you will need to take the highest balance in each account during the year and convert each foreign balance using the December 31st exchange rate. For more information on FBAR’s, please click here. See below for some of the more common foreign exchange rates for the past few years and a link for other currencies not included below. Note that all FBAR forms must be submitted online through the BSA E-filing Network.
Form 8938- Statement of Foreign Financial Assets
Form 8938 was introduced and required to be filed starting for the 2011 tax year. This form has many similar qualities to the FBAR form and is required in addition to the FBAR form if you meet the requirements. Generally, you would have an 8938 filing requirement if you fall into any of the following categories below:
Taxpayers living outside of the United States
a) Unmarried Taxpayers
- Unmarried Taxpayers have a requirement to file Form 8938 if they have specified foreign financial assets (included foreign bank and investment accounts) with a value exceeding $200,000 on the last day of the year or more than $300,000 at any point during the year.
b) Married Taxpayers- filing joint returns
- If you are filing a married filing joint tax return, you will have an 8938 filing requirement if your specified foreign financial assets are more than $400,000 on the last day of the year or if the value was over $600,000 at any point during the year.
c) Married Taxpayers- filing separate returns
- If you are filing a separate tax return and you are married, you will have an 8938 filing requirement with the same criteria as for an unmarried tax return being if you have specified foreign financial assets that exceed $200,000 on the last day of the year or $300,000 at any point during the year.
Similar to the FBAR form, you are required to disclose all of your foreign accounts and convert the highest foreign balance during the year into US dollars using the December 31st exchange rate.
December 31st exchange rates 2010-2015
2015- 1.3860 2012- .9950
2014- 1.1580 2011- 1.0180
2013- 1.0637 2010- .9946
Other commonly currencies 2012-2015
USD/ UK pound USD/Japan Yen
2015- .6750 2015- 120.42
2014- .6420 2014- 119.45
2013- .6050 2013- 105.01
2012- .6180 2012- 86.16
For a complete list of year end exchange rates, please refer to the United States Department of the Treasury website:
IRS Foreign exchange website 2015
Tony Theaker, CPA, CA
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