Are Closed Foreign Accounts Reported on an FBAR?
Are Closed Foreign Accounts Reported on an FBAR? The FBAR is the Foreign Bank Account Reporting Form. It is also referred to as the Foreign Bank and Financial Account reporting form, or FinCEN Form 114. There are many different types of “accounts” that are reported to the IRS via FinCEN’s website on the FBAR, including: Investment Accounts; Life Insurance Policies; Stock Accounts; Pension, and more.
A common question we receive, is whether closed foreign accounts are reported on the FBAR?
The answer is yes, and no.
Dormant Accounts vs. Closed Accounts
Here is a common example: David closed his foreign account with $200,000 in it on December 27, 2019. Does David report the account in 2020 when he completes his 2019 FBAR?
Does David report it again in 2021, on his 2020 FBAR?
But, if the account is “zeroed out” and still open (sometimes known as a dormant, sleeping or inactive account), it is still reported, because the account is not closed.
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