FBAR and FATCA Explained for Americans in Australia

As an American living in Australia, your Australian bank accounts, investments and super can create US reporting obligations, even when you owe no US tax. The two you'll hear about most are the FBAR and FATCA.

FBAR (FinCEN Form 114)

• Who files: US persons whose foreign financial accounts had a combined balance of more than US$10,000 at any time during the year.
• What's included: bank accounts, term deposits, investment accounts and accounts you have signature authority over, including joint and business accounts.
• Where it goes: it's filed electronically with FinCEN, not with your tax return.
• When: due April 15, automatically extended to October 15.

FATCA (Form 8938)

US citizens and resident aliens living abroad must file Form 8938 (Statement of Specified Foreign Financial Assets) with their tax return if their specified foreign financial assets are worth more than:

• Single, or married filing separately: US$200,000 on the last day of the tax year, or US$300,000 at any time during the year
• Married filing jointly: US$400,000 on the last day of the tax year, or US$600,000 at any time during the year

FBAR and FATCA are separate

Many people need to file both. Meeting one requirement doesn't satisfy the other, and the two forms have different thresholds and rules about what counts.

What about super?

Australian superannuation doesn't fit neatly into US rules, and its treatment for both reporting and tax needs specific advice. We review your super as part of your US return.

Missed filings?

Penalties for not filing can be significant, but if the failure wasn't wilful, the IRS Streamlined Foreign Offshore Procedures offer a way to catch up, generally without failure-to-file penalties.

Need help? US filings for SydneyTaxAccountant clients are prepared and filed by Waycorp Advisors Inc., an authorised IRS e-file provider. Call 1300 661 380 or book a free consultation.

This article is general information only and doesn't take your personal circumstances into account.