Foreign bank account - J1 visa

[Snorkel]

Hi,

I read a lot of things concerning FBAR forms etc. but it's still not clear for me if I have to declare my foreign bank account or not in the US.

I am French, working in the US since January 2019 under a J1 visa. My husband is a J2 and I did our tax return this year but we didn't know that foreign bank accounts have to be declared... We have been more than 180 days in the US so we are considered as non-resident for part of the year, and resident for tax purpose for the rest of the year. Did we have to file a FBAR form or any other form related to foreign bank accounts? 

We have to do a tax return in our respective countries too and I have to declare those accounts and interests received in France already. Moreover, those accounts are money that I earned before coming to the US, so it didn't come to my mind that I should have done it here too... If I had to...

If I had to, is there an option to do it now without penalties? I lost and super stressed now.

[pk · Accepted solution]

@Snorkel , assuming that you are still in need of an answer ,  FBAR  ( form 114 at www.FinCen.gov ) and FATCA  ( form 8938 along with your tax return ) are  REQUIRED for US persons  ( US Citizen/Resident / Resident for Tax purposes ).  There are no tax consequences of having monies in a foreign bank ( reported  on FBAR form ) or specified financial assets in foreign banks etc. ( FATCA form ).   However, non compliance with  these regs. may result in quite honorous penalties.  When in doubt it is advisable to file.  Also note that  that while foreign banks and other financial entities regularly report of accounts held by US persons ( i.e. with SSN and ITIN )  but old  accounts  owned by a local person with no US reporting addresses may not get reported and therefore FinCen and IRS both require  you to report these accounts .  The reporting bar for  FABR is any owned or signature authority accounts  with $10,000 or over during the year must be reported.

Please see this from the IRS on FATCA form 8938-->https://www.irs.gov/businesses/corporations/do-i-need-to-file-form-8938-statement-of-specified-forei...

Also note that  once you pass the substantial presence test and therefore become a Resident for tax purposes, you are taxed on world income including passive items like interest/dividend/rent etc from foreign holdings.

Does this answer your query or do you need more help ?