FBAR Indian Accounts Filing Requirements
Indian Accounts Assets FBAR: With so many Indian Nationals having U.S. Person status, the IRS FBAR requirement is a part of life for many of our clients. When it comes to India, there are many accounts and assets that are subject to Foreign Bank and Financial Account Reporting on the FBAR (aka FinCEN Form 114). Some of the more common assets, include: Bank Accounts (NRO & NRE); Fixed Deposits (FDs); Life Insurance Policies (Prudential and LIC); Mutual Funds; Demat Accounts; PPF (Public Provident Fund); EPF (Employee Provident Fund); Stocks and Rental Properties.
Lets’ Review India Accounts & FBAR filing.
Bank Accounts are reportable.
Whether or not they are in a checking account, savings accounts, NRO, and NRE — they are all reportable.
Bank such as ICICI, SBI, Axis and more have been actively reporting to the IRS.
Investment Accounts are reportable.
For example, while stock certificates held directly are not required to be included on the FBAR (if they are not in an account), if stock and/or other Indian investments are an account, the account is reportable.
Life insurance is reportable on the FBAR when it has a surrender/cash value.
Mutual Funds are reportable on the FBAR.
If it is in an account, the account is reportable and the filer will aggregate the funds to highest account max value during the year.
If the funds are owned individually, then the individual are generally reported on the FBAR.
Demat accounts (dematerialized accounts) are reported on the FBAR.
This is true, even if the shares are not being actively traded (a common misconception is dormant Demat is not reportable).
PPF is a Public Provident Fund, and the value of the fund is reported on the FBAR.
In addition, the accrued growth is taxable in the U.S.
EPF is an Employee Provident Fund, and the value of the fund is reported on the FBAR.
Even if the Fund is dormant and the income that is accruing is not taxable, it is reportable.
Stock and Rental Properties
Individual Stock and Rental Properties are not reported on the FBAR, but may be reportable on other forms depending on how they are held (for example, if they are in an entity).
Our FBAR Lawyers Represent Clients Worldwide
Our FBAR Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
Interested in Learning More about Golding & Golding?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.