ExpertEasy1 markMultiple Choice
CPA · Question 47 · Area 3: Entity Tax Compliance
A US person has a financial interest in a foreign bank account with a balance of $15,000. Is FBAR (FinCEN Form 114) reporting required?
A US person has a financial interest in a foreign bank account with a balance of $15,000. Is FBAR (FinCEN Form 114) reporting required?
Answer options:
A.
Yes, because the balance exceeded $10,000.
B.
No, the threshold is $50,000.
C.
No, unless income was generated.
D.
Yes, all foreign accounts must be reported.
How to approach this question
1. Identify FBAR Threshold: Aggregate maximum value exceeding $10,000 at any time during the year.<br/>2. Check Facts: Balance $15,000 > $10,000.<br/>3. Result: Reporting required.
Full Answer
A.Yes, because the balance exceeded $10,000.✓ Correct
Since the account balance exceeded $10,000, an FBAR must be filed.
Common mistakes
Confusing FBAR ($10k) with Form 8938 ($50k+) thresholds.
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