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:

Yes, because the balance exceeded $10,000.

No, the threshold is $50,000.

No, unless income was generated.

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. 2. Check Facts: Balance $15,000 > $10,000. 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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