US-person reporting: FBAR and FATCA

The most consistently reported friction point for Americans abroad is refusals or closures driven by FATCA (the Foreign Account Tax Compliance Act): many banks outside the US simply prefer not to take on the reporting burden that comes with a US-person client, regardless of how straightforward that person's actual finances are. And the US taxes citizens on worldwide income regardless of where they live - holding a second passport doesn't offset any of it.

If you are a US person with foreign accounts, two separate filings apply - with different thresholds and different destinations (US-specific figures, current as of this module's review date):

• FBAR (FinCEN Form 114): required once the aggregate value of all foreign accounts exceeded $10,000 at any point in the year. Filed with FinCEN directly via the BSA e-filing system - not part of your tax return. Due April 15, with an automatic extension to October 15.
• FATCA (Form 8938): required at $200,000 at year-end or $300,000 at any point for a single filer living abroad (thresholds are lower for filers resident in the US). Filed with your regular IRS tax return, by your return's deadline.

Know your thresholds and your current filing status, and check the details with a qualified source - thresholds, forms, and programmes like the Streamlined Procedures change, and this module is educational context, not tax advice.

• As a US citizen or green-card holder, I know my FBAR/FATCA thresholds and I have checked my current filing status with a qualified source.

These become trackable items in your checklist once your personalized plan is generated.

• The expat
• The dual citizen / second-passport holder
• Your next step