A senior citizen has permanently moved abroad since May 2019 - which address should she use on FBAR and tax return?

[curious4913]

FBar and tax return related question.

Since May 2019 - senior citizen has moved abroad and has not come back - neither she is intending to. Before moving she was filing FBAR every year and was giving US address of her son. Son was also preparer on FBAR last page.

Now she has moved ...what address she should give ..on page 2 where it ask for her personal information? should it be overseas or US address of her son?

I believe her son can continue to claim as preparer for her FBAR correct? (who is still in USA?) or that section is only for paid preparer ? and even if son files for it....we can still leave it blank?

[ErnieS0]

Enter the U.S. mailing address. An individual residing outside the United States must enter the individual's United States mailing address. If the individual does not have a United States mailing address, the individual must enter a foreign residence address. 

The third-party information is for paid preparers.

Related Resource:

• BSA Electronic Filing Requirements For Report of Foreign Bank and Financial Accounts (FinCEN Form 11...

[curious4913]

Thanks ..just to clarify/confirm - responses you have given applies to both FBAR and tax return?

1. She has no intention to move to USA -  (please note she has not lived with her son for last 2 years ) She does not have any other US address. - does she still use her son's address?

2. She is not preparing - her son is preparing ..still her son would be considered third party preparer? I know he is not paid for this preparation.

[BillM223]

"She does not have any other US address. - does she still use her son's address?"

She needs to enter the address that she will respond to if/when the IRS sends her a notice about anything (which, of course, may not happen, but the IRS still wants to know how to reach her).

So that's a decision between her and her son. If he agrees that he will always respond to/forward any IRS correspondence, then she can use his US mailing address. At this point, however, the two of them perhaps have a discussion of her giving him a limited power of attorney on taxation matters. They may want to discuss this with the family attorney.

If the son gets a limited power of attorney (form 2848) then he could sign the return for her, but I understand that this may require a family meeting.

In the meantime, if she wants her son to be able to talk to the IRS about her return, she needs to answer the question in the TurboTax interview ("Do you want the taxing authority to be able to discuss your return with anyone else?" )

[curious4913]

Thanks ..but you did not answer my question about third party preparer ...is that section only for paid preparer? or son who is preparing the fbar and tax return for the mother should put his details in the third party preparer section?

[DMarkM1]

There is a "Third Party Designee" section where the son's information can go if he is allowed to discuss the return with the IRS for any reason. 

There is also a "Paid Preparer" section that does not need to be completed.

[curious4913]

I checked the FBAR form again but there is no 'paid preparer' section - it has only third party preparer section.

I think you are referring to 1040 form ..yes on that form there is only paid preparer section.

So basically I wanted to confirm on FBAR - if son is preparing - he has to leave third party preparer section blank correct?

[JeffreyR77]

The original question is what address should the taxpayer use on their tax return and on their FBAR? 

If they have arranged with their son to use their US address as an address to receive essential US mail then there is no issue - she can continue to use his address as her US address.

A secondary issue arises as the son is preparing the FBAR. 

Consistent with FinCEN instructions that provide for approved third party filing of the FBAR, an attorney, enrolled agent or CPA must provide documented authority via Treasury Form 114a  by the client to sign and submit FBARs on their behalf. 

Whereas IRS rules allow individuals, including family members, to represent taxpayers with a valid taxpayer signed Power of Attorney, the FBAR is much more restricted, 

Unless the son is an attorney, enrolled agent or CPA, the taxpayer (and son) is non-compliant in filing her FBARs regardless of the address on them.

Individuals vs CPA, Attorney and Paid Tax Preparers

[curious4913]

What do you mean by non compliant - if a senior citizen person does not know how to use computer and her son helps her ..in filing FBAR to meet the requirement by IRS ---- is it illegal ?

Please note that FBAR has to file electronically.

[curious4913]

You said ---- Consistent with FinCEN instructions that provide for approved third party filing of the FBAR, an attorney, enrolled agent or CPA must provide documented authority via Treasury Form 114a  by the client to sign and submit FBARs on their behalf. 

So what is the solution in this case...how can son help his senior citizen mother who is residing overseas and can not use internet/computer to file FBAR from foreign country?

[curious4913]

Please check this link - https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-a...

It says - - Don’t use Form 2848 if a related income tax examination doesn’t apply. You may use a general power of attorney form executed under applicable state law.

So in this if son has general power attorney that covers tax matters - can he file FBAR on behalf of mother?

[curious4913]

So can we address like this 

Tax payers's name

C/O son's name

Son's address 

[JeffreyR77]

One solution is to add son on to mom's accounts.  He then can sign as joint owner and solves all the POA issues.   The FinCen rules appear to limit preparers to either account holders or signatories within Treasury Circular 230 jurisdiction.  

[curious4913]

@ErnieS0 Can you confirm she can use her son's US address as her US mailing address?

So address on FBAR would go like this

C/O - Son's name

Son's address

USA 

Does it look ok?

[ErnieS0 · Accepted solution]

@curious4913 Yes. That looks fine. The IRS says, "If you receive your mail in care of a third party (such as an accountant or attorney), enter “C/O” followed by the
third party’s name and street address or P.O. box."