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

CdnAmerican · Post by **CdnAmerican** » Sun Feb 02, 2014 1:28 am

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?

nelsona · Post by **nelsona** » Wed Feb 05, 2014 2:23 pm

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.

CdnAmerican · Post by **CdnAmerican** » Wed Feb 05, 2014 6:02 pm

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

nelsona · Post by **nelsona** » Wed Feb 05, 2014 6:11 pm

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.

CdnAmerican · Post by **CdnAmerican** » Wed Feb 05, 2014 6:19 pm

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.

nelsona · Post by **nelsona** » Wed Feb 05, 2014 10:20 pm

The limit is so that they don't get 1000 page submissions, or GB-size electronic filings.