r2i forum

Parents have an overseas bank account whose total amount is >= $10,000, so they will file FBAR.
Their teenage child also has an overseas bank account whose total amount is little (< $10,000). The parents do NOT claim the child as their dependent on their US return.
The parents do NOT have signature authority over the child's overseas bank account.

1. Does the child overseas bank account need to be reported on the parents' FBAR ?

2. If the child eventually files his own US return in the future, since the total amount is < $10,000, he doesn't need to report his overseas bank account on his own FBAR, correct ?
Thank you in advance for the help.

Hi Smaria,

If the child is filing its own return, then she/he should also file the FBAR for the overseas account, otherwise the parents should file the FBAR and include the overseas account in the reporting.

Regards,
KKA
US and India tax filers.
www.kkassociate.com

Thank you.

For my own knowledge, can I ask you more questions on FBAR ?
Does FBAR need to be filed per person, or 1 FBAR for everybody in the same tax return (ie 1 FBAR for the tax preparer and its dependents) ? My understanding is FBAR needs to be filed per person separately.

Consider the following scenarios:
Tax payer has an overseas bank account whose total amount is >= $10,000, so he will file FBAR.
His dependent also has an overseas bank account.

1. If Tax payer dependent's overseas bank account is < $10,000, does the tax payer need to include his dependent's account in his FBAR ,
or since his dependent's overseas bank account is < $10,000, he doesn't need to include it in his FBAR (because FBAR is per person) ?

2. If Tax payer dependent's overseas bank account is >= $10,000, does the tax payer need to include his dependent's account in his FBAR,
or does he file a separate FBAR for his dependent's overseas bank account ?

Thank you.

kkassociate;397117Hi Smaria,

If the child is filing its own return, then she/he should also file the FBAR for the overseas account, otherwise the parents should file the FBAR and include the overseas account in the reporting.

Regards,
KKA
US and India tax filers.
www.kkassociate.com

No, the IRS has said that return filing is not a consideration for filing an FBAR and even cited an infant with foreign financial accounts as a case where an FBAR should be filed on behalf of the infant if the infant has reportable foreign financial accounts. Presumably, the infant wouldn't sign the FBAR form :-). I think it would be safest to report in the parents FBAR forms (because the parents may be considered to have authority on the account even though the teen is not a dependent) AND have the teenager file separately as well. It doesn't hurt to file an extra form, even if its not strictly needed, so one should do it.

This only apply if the child's bank account total amount is > $10K, right ?
If if it < $10K, neither the parent or the child need to file FBAR, is that correct ?

Hi Greyfri,

If the child is filing a separate return, who is signing the returns, the child or the guardian?, Though the filing of returns is not important, but if the child is signing and filing his/her returns, he/she should also be filing the FBAR and signing it,

Off course if the parents have the authority to the child's account they should include those accounts in that parents FBAR who has the signing authority on the returns.

Regards,
KKA

greyfri;397457No, the IRS has said that return filing is not a consideration for filing an FBAR and even cited an infant with foreign financial accounts as a case where an FBAR should be filed on behalf of the infant if the infant has reportable foreign financial accounts. Presumably, the infant wouldn't sign the FBAR form :-). I think it would be safest to report in the parents FBAR forms (because the parents may be considered to have authority on the account even though the teen is not a dependent) AND have the teenager file separately as well. It doesn't hurt to file an extra form, even if its not strictly needed, so one should do it.

kkassociate;397748Hi Greyfri,

If the child is filing a separate return, who is signing the returns, the child or the guardian?, Though the filing of returns is not important, but if the child is signing and filing his/her returns, he/she should also be filing the FBAR and signing it,

Off course if the parents have the authority to the child's account they should include those accounts in that parents FBAR who has the signing authority on the returns.

Regards,
KKA

Yes, if the child is signing and/or filing returns, then he/she should sign the FBAR, otherwise I presume the parent would do it. Assuming the child has a reportable account (> 10K).

As far as parents go, even if the account is owned by the child and the parents do not have signatory authority on it, they might have enough influence on the child to be considered having "other authority". I think it would be safer to include it in any case. No downside from doing that.

PS: This IRS seminar

http://www.irsvideos.gov/ReportingForeignFinancialAccountsOnTheFBAR/player/PowerPoint_Presentation.pdf

had this question

"Do I need to file an FBAR for my infant
son who is a U.S. citizen and has
foreign financial accounts, but is not
required to file a tax return?
Yes. There are no age limitations on FBAR
filing. An FBAR should be filed on behalf
of your son if he has reportable foreign
financial accounts. Remember--tax filing
status is not a consideration for FBAR. "