Declaring foreign bank accounts and transferring money

[dmclean222]

Hello, 

I've been a permanent resident for 15 months now and have just learned about declaring foreign bank accounts. 

I have a UK bank account and would like to transfer all of the money in there to my USA bank account. 

What do I need to do? 

Thank you 

[RalphH1]

I can comment on the tax side of this (but not on things like the bank transfer process), so I can tell you that the TurboTax program will ask you about owning foreign financial accounts, and whether you had a $10,000 balance (requiring the FBAR), a $50k—$75k balance (requiring Form 8938), or any transactions related to foreign trusts (for Form 3520). 

However, @dmclean222, you probably knew that already(!). Hopefully someone wanders by here with some international bank transfer advice (or you’re able to get it easily from the bank itself). But don’t hesitate to re-post with any 2022 questions on the 8938 (which TurboTax does), or basic concerns about the other foreign reporting forms.

[dmclean222]

Hi @RalphH1 

Thanks for the info! 

I don't really need help with the transfer. 

Problem is I only just found out about this and filed last year without declaring it - what should I do in this situation? 

I have also already transferred around 12k during that period. 

Lastly, do I need to complete this form prior to transferring the full amount? Or can it be done at filing time? 

Thank  you 

[JohnB5677]

Yes, you should file the 8938 and possibly a FinCen form 114 as soon as possible. There is no way to back date it, but the sooner it is reported, the better.  U.S. Tax Guide for Aliens

Use Form 8938 to report your specified foreign financial assets.  Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 will report information about those assets on new Form 8938, which must be attached to the taxpayer’s annual income tax return.

FinCen is for a United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.

[Opus 17]

If you own a foreign account with more than $10,000 at any time during the year, you must report owning the account.  No tax is actually owed.

The banks will report the transfer, if a report is needed.  Transferring money that you already own from one account to another (no matter where located) is not a taxable event.

[dmclean222]

Hi, 

I'm panicking now. 

Will this form have been covered in our married filing jointly turbotax package or not? I.e. notifying of foreign accounts....

[Opus 17]

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@dmclean222 wrote:

Hi, 

I'm panicking now. 

Will this form have been covered in our married filing jointly turbotax package or not? I.e. notifying of foreign accounts....

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No, it's not included in your regular tax return.  It's a separate form, although the deadline is the same.  You can usually complete the report online. 

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