Hello,
What source does one use as the exchange rate for an FBAR when the account only had a balance(over 10k) for one day during the year?
It seems the US Treasury end of year rate is used, generally, but that is assumed there was money in
the account all year or at least at the end of the year.
Also, this US Treasury rate is provided only once per year and would show more than 10% more USD
value in the account than was actually taken out.
Have read the Treasury does not like other sources for the rate. Is this correct or how to proceed?
Thanks in advance.
@rl50 from your post I am not clear as to what you are trying to achieve. As a US person you are required to report ALL foreign financial accounts either owned or with signature authority. The threshold for this recognition is US$10,000 either on the last day of the year or essentially at any time during the year. Considering that the penalty for non-reporting is quite onerous and that there is no tax consequences for reporting, it is safer to file form 114 ( FinCen.gov ) rather than take a chance i.e. when in doubt , file the form.
Your post suggests that you do not wish to file this unless absolutely sure that there is a need i.e. the threshold has been met.. Note that IRS does get info on substantially all foreign bank accounts controlled by US persons ( normal part of finacila information exchange between US and most countries.
So please file the form.
Is there more I can do for you ?
pk