Having a saving bank account in Puerto Rico is considered as having a foreign bank account?

[DS30]

No not according to the IRS so you will not have to report this account as a foreign bank account.

According to the IRS, related to FBAR. and foreign financial reporting, the definition of a foreign country (and if the account is considered a foreign account) is;

A foreign country includes all geographical areas outside the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands). An account in an institution known as a United States “military banking facility” is not considered to be an account in a foreign country.

Please see this link for more information IRS - Foreign Financial Accounts Reporting Requirements

[jwheiser]

The  answer to the taxpayer's question should be modified.  The question is "Having a saving bank account in Puerto Rico is considered as having a foreign bank account?"  The reply stated it is not for FBAR purposes, which is the correct answer--with respect to FBAR.  However, it could be a foreign bank acct. for Form 8938 purposes, which must be attached to the Form 1040.  A Form 8938, "Statement of Specified Foreign Financial Assets", must be completed to report the PR Savings Acct. if the bank with the acct. was created in PR and the owner of the acct. is not a resident of Puerto Rico.  See Form 8938 Instructions.  Joseph W. Heiser, CPA

[jmalayeto]

I have the same concern and what I have found is this:

A financial account is foreign when it is located outside of the United States, which includes the following places: 

United States, including the District of Columbia;

United States territories and possessions, such as:

1. Commonwealth Northern Mariana Islands 
2. District of Columbia o American Samoa
   Guam o Commonwealth of Puerto Rico
3. United States Virgin Islands
4. Trust Territories of the Pacific Islands

Therefore, according to this if you have a bank account in a bank located in Puerto Rico, it counts as a foreign bank account for FBAR purposes. 

Source: https://www.irs.gov/pub/irs-utl/IRS_FBAR_Reference_Guide.pdf

[IsabellaG]

@jmalayeto: The link that you are showing is saying that United States territories and possessions are considered part of the United States, not outside the United States. So as the other posters have indicated, for FBAR purposes a bank located in Puerto Rico is not counted as a foreign bank account.

[jmalayeto]

Thank you! I was honestly expecting to be wrong

[IsabellaG]

You're welcome! The wording is a bit confusing when you first read it.