FBAR for more than/less than 25 accounts - simple question

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CdnAmerican
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Joined: Tue Aug 30, 2011 12:15 am

FBAR for more than/less than 25 accounts - simple question

Post by CdnAmerican »

This may be very basic. In the FBAR form, it indicates no need to provide specific account information if you have more than 25 accounts (other than keeping records in case you are asked later). If you have less than 25, you have to detail them all. This seems kind of backwards to me. It would seem like a Big Fish would potentially have a huge number of accounts. Is there something basic I'm missing?
Not a professional opinion.
nelsona
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Post by nelsona »

Do you mean the FinCEN form that has replaced FBAR.

The reasoning Treasury is using makes sense. The number could be smaller, like 10, but 25 is the number they have chosen.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
CdnAmerican
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Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

Thanks nelsona. Yes, I meant FinCEN. It just seems that one could add accounts for no reason other than to avoid this specific reporting.
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nelsona
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Post by nelsona »

So, you think the threshold should be higher?

Remember that Treasury doesn't really use FBAR reporting to catch people. It uses the FAILURE to file FBAR to punish criminals that are caught by other means.

The FBAR fines that are collected from ordinary taxpayers merely go to financially support FinCEN investigation costs. They are a bonus.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
CdnAmerican
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Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

That's a good reminder of the purpose of these reports. I guess I'm surprised that there is any limit at all on the number.
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nelsona
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Post by nelsona »

The limit is so that they don't get 1000 page submissions, or GB-size electronic filings.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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