Hey
Many thanks for your digging. I just had a full read of the IRS memorandum , which is very interesting. 95% of them I agree. The only thing I am not sure is "all credit cards are backed by banks. On the FBAR, you are not reporting the credit card information but you are reporting bank information that back the credit cards."
Now, we just talk about the normal credit card, no positive balance no advanced payment as deposit card. If I have a normal credit card account A issued by credit card company B and I use the the deposit bank account C issued by bank D to pay it back. For FinCEN form 114, I just checked. They only ask you to fill in your filer info and account info (not the bank info) including account number, max value, institution name, address etc.
1. Based on my understanding to the memo, we should just report C, which include the info from D. We do not need to report anything about A and B. I do not know whether you are in the same page. Or you mean we do not need to report A but B. If it is, may I ask how to report B individually in the FinCEN?
2. If we both agree in the question 1, I assume we only need to report C including the info of D in the 8938 as well. We do not need to report anything about A and B in the 8938.
3, if you mean reporting B to some place else, please let me know
Many thanks. Sorry to bother you again and again. I just want to understand how it really works. It really confuses me a lot
