Basic Rule

A United States person that has a financial interest in or signature authority over foreign financial accounts must file a FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.

U.S. Person

United States person means United States citizens; United States residents which INCLUDE green card residents, and visa holders meeting the U.S. tax residency tests; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Financial Interest.

A United States person has a financial interest in a foreign financial account for which:

1. The United States person is the owner of record or holder of legal title, regardless of whether the account is maintained for the benefit of the United States person or for the benefit of another person;

2.  Or the owner of record or holder of legal title is one of the following:

      a) An agent, nominee, attorney, or a person acting in some other capacity on behalf of The United States person with respect to the account.

     b) A corporation in which the United States person owns directly or indirectly: (i) more than 50 percent of the total value of shares of stock or (ii) more than 50 percent of the voting power of all shares of stock.

3.  A partnership in which the United States person owns directly or indirectly: (i) an interest in more than 50 percent of the partnership’s profits (e.g., distributive share of partnership income taking into account any special allocation agreement) or (ii) an interest in more than 50 percent of the partnership capital.

 4.  A trust of which the United States person: (i) is the trust grantor and (ii) has an ownership interest in the trust for United States federal tax purposes. See 26 U.S.C. sections 671-679 to determine if agrantor has an ownership interest in a trust;

  5.  A trust in which the United States person has a greater than 50 percent present beneficial interest in the assets or income of the trust for the calendar year.

6.   Any other entity in which the United States person owns directly or indirectly more than 50 percent  percent of the voting power, total value of equity interest or assets, or interest in profits.

 Foreign Financial Account.

A foreign financial account is a financial account located outside of the United States. For example, an account maintained with a branch of a United States bank that is physically located outside of the United States is a foreign financial account. An account maintained with a branch of a foreign bank that is physically located in the United States is not a foreign financial account.

Note: This includes insurance policies with cash value and many other foreign financial instruments with a demand features.