FATCA question

[Yrybak08]

I’m a US Citizen with accounts in europe. I know I have to report accounts when balance hits 10k at any time in a calendar year or when aggregate balances across all accounts reaches 10k. My question is; what information does the bank report to the fincen? Do they report my highest balance of the year even if it doesn’t reach 10k? Do they only report it if reaches 10k?

 

[wellington]

With the US, i'd imagine everything is reported - just not worth the bother for most financial institutions to risk missing important information off where Americans are concerned.

 

[Sols]

To the best of my recollection, every bank and EMI I've spoken with report all accounts controlled by US persons to FinCEN under FATCA. They don't care about thresholds. They see US, they report.

 

[Yrybak08]

Sure but what information do they report? Monthly balances? Daily balances? Highest balance of the year?

 

[Sols]

Sure but what information do they report? Monthly balances? Daily balances? Highest balance of the year?

No easy answer unfortunately, as banks may interpret the requirements a little differently. It also depends on the asset or account type being reported.

But it's typically account holder name, account holder date of birth, account number, jurisdiction of tax residence (in addition to US), ID numbers, year end account balance, totals of certain credit transactions (interest, dividends, sales of assets), and whether the account is still open.

 

[daniels27]

For bank accounts, it is the average balance over the year, see Treasury regulations section 1.1471-4(d)(4)(iii).

26 CFR § 1.1471-4 - FFI agreement.

www.law.cornell.edu

You can check that document, it is pretty clear what is being reported:

• The name, address, and TIN (title, first name, middle name, last name, birth date, birth city, birth country, TIN, numerous address fields, country)
• The account number
• The average balance for a calendar year (and currency)
• The gross amount of interest paid or credited to the account during the year
• Whether the account was closed

You can also check Form 8966 which the banks (don't) use:

https://www.irs.gov/pub/irs-pdf/f8966.pdf

They use the XML which contains the same data:

https://www.irs.gov/pub/irs-pdf/p5124.pdf

Please also note the Record retention requirements of the legislation linked above:

Record retention requirements. A participating FFI that produces, in the ordinary course of its business, account statements that summarize the activity (including withdrawals, transfers, and closures) of an account for any calendar year in which the account was required to be reported under paragraph (d)(3) of this section must retain a record of such account statements. The record must be retained for the longer of six years or the retention period under the FFI's normal business procedures. A participating FFI may be required to extend the six year retention period if the IRS requests such an extension prior to the expiration of the six year period.

All in all, you can be sure that they can get all data the bank holds about you.

 

[Yrybak08]

Awesome lol