bank account - with 1 cent interest

tony · Post by **tony** » Tue Mar 07, 2017 2:09 am

1. if an account is not closed but left with $0, does it required tax reporting?
2. if it is closed in mid - year, does it still need to be reporting during that particular taxation year?
3. Now, regarding TFSA. Unfortunately it is closed in Feb. And, in Jan 31, it results with ONLY 1 cent interest. Does it still need to be reported? FBAR + FATCA, correct?

thanks

MGeorge · Post by **MGeorge** » Tue Mar 07, 2017 10:49 am

Hi Tony,

Officially, yes the account needs to be reported. On form 8938 (FATCA form) there is a box to check "account closed during the year". The $0.01 interest won't even register because of rounding. If you closed your TFSA and have in the past, been reporting it on 3520/3520A, then I would report it again in 2016 and make sure you check the "final return" box. If you haven't been reporting TFSA on 3520, I wouldn't start for 2016 - there is a lawyer in Canada I know about who proposes that the US wouldn't view a TFSA as a trust.

Cheers!