Maximum account value FBAR

[splpez]

For one of my accounts to be reported, on the day of maximum value I transferred € 6.000 into my account. The balance was € 0 until that moment. On that same day I transferred out of my account € 1,800. Is the maximum account value to be reported in the FBAR € 6,000 or € 4,200?

[GeoffreyG]

That is a really good question.  Your answer is, because it would impose an unreasonable accounting burden on both international banks and U.S. taxpayers (and perhaps impose an unattainable standard), we count the balance (value) of an account as of the close of business each day.  We don't concern ourselves with, or need to report, intraday balance spikes and dips.

Thus, in your case, and given the numbers you cite, you would report your overseas account balance as having a maximum value of € 4.200 (4,200 Euros), and not 6,000 Euros

Thank you for asking about this.

[splpez]

Thank you. Now, based on your answer, I have another doubt: I have closed one of my other accounts on Feb 2. The balance on Jan 1 was € 1,600. There were no movements until Feb 2 (day of closure). On Feb 2 I moved € 4,000 into the account, so the balance on the day of closure was € 5,600. What is the maximum account value, € 1,600, € 5,600 or € 0? Based on your response it would be € 1,600 but are there any exception for account closure?

[GeoffreyG]

Hello splpez:

There are no exceptions (to maximum daily closing value reporting) for accounts that are closed during the year -- at least that I am aware of.  There is, however, a place on the compliance form(s)  to indicate that the foreign account was closed by the owner during the calendar year.  If that applies to you (and it seems like it does), then you can indicate this when you complete the compliance form.

Thank you for asking this follow-up question.

[splpez]

Thanks but I have not found any place on the FBAR to indicate that the foreign account is closed. Based on my research on Turbotax, there seems to be no place to indicate that. Not sure if you meant any other form, if so please clarify. Thanks