u.s. expat tax guide – ireland
Do US citizens in Ireland need to file an FBAR?
If you’re a US citizen living in Ireland and you have foreign bank accounts or other financial accounts outside the US, you may need to file an FBAR (Foreign Bank and Financial Accounts Report).
This filing is required if the total value of your foreign accounts exceeds US$10,000 at any time during the year. The FBAR helps the US government keep track of money held abroad to prevent tax evasion.
Who has to file an FBAR while living in Ireland?
You must file an FBAR if the combined value of all your foreign accounts, including bank accounts, mutual funds, and other financial accounts, exceeds US$10,000. This rule applies whether you live in the US or abroad, like in Ireland.
Even your pension accounts can count toward this total. For many people, including pensions and other accounts means they need to file an FBAR.
What types of accounts need to be reported on an FBAR?
You should consider all types of foreign financial accounts when determining if you need to file an FBAR, including:
- Bank Accounts: This includes savings, checking, and deposit accounts held outside the US.
- Investment Accounts: Accounts like brokerage accounts or securities holdings.
- Other Financial Accounts: This category includes mutual funds, certain insurance policies, and even online payment accounts like PayPal or Wise.
Retirement accounts, depending on their structure, might also need to be reported. It’s best to get a tax professional’s advice to make sure you’re fulfilling your tax obligations.
How do you calculate if you need to file an FBAR?
To figure out if you need to file an FBAR, add up the highest balances of all your foreign financial accounts during the year.
If the total is over US$10,000, you need to report every non-US account you hold, even those with little or no money in them.
When is the FBAR filing deadline?
The FBAR must be filed by April 15 for the previous calendar year.
However, there’s an automatic extension until October 15, so if you miss the April deadline, you still have time to file without needing to request an extension.
What happens if you miss the FBAR deadline?
If you don’t file your FBAR on time, the penalties can be severe:
- Non-Willful: If you didn’t know you needed to file, you could be fined up to US$10,000 per violation.
- Willful: If you knowingly didn’t file, the penalties are much steeper—up to US$100,000 or 50% of the account balance at the time of the violation, whichever is greater.
How do you file an FBAR?
Filing an FBAR is done online through the BSA E-Filing System. Here’s what you need to do:
- Access the Filing System: Go to the BSA E-Filing System here.
- Complete FinCEN Form 114: You’ll need to fill out details like your name, Social Security number, and information about each foreign account (such as the account number, the bank’s name, and the highest balance during the year).
- Review and Submit: Double-check all the information, then submit the form electronically.
Should you get help with filing an FBAR?
If your financial situation is simple, you might be able to handle filing the FBAR on your own.
However, if you have multiple accounts, or if you’re unsure about the process, it might be wise to consult with a tax professional who understands US-Ireland tax issues.
For a step-by-step guide on filing your FBAR, you can visit this link: FBAR Filing.
