Is Mutual Fund FBAR Reporting Required? (2024)

Mutual Funds & FBAR Reporting

Contents

1 FBAR Mutual Fund Filing
4 FBAR Lawyers For Mutual Funds and Investment Late Reporting

FBAR Mutual Fund Filing

FBAR and Mutual Fund Filing: When a U.S. Person has foreign mutual funds or other investment funds, the person has an FBAR reporting and IRS disclosure requirement. How to report the Foreign Mutual Funds and Investment Funds on the FBAR will vary based on how they are being held by the U.S. Person.

For example, if the funds are in a single “investment” account, it will be reported different than if they are behind held in individual accounts.

And, with the IRS taking an aggressive position on matters involving foreign account compliance, it is important to remain compliant.

We will summarize Mutual Fund and FBAR reporting requirements.

FBAR & Investment Accounts

When a U.S. person has a foreign investment account, the account is reportable — and the acronym FBAR can be deceiving.

Why?

Because it is not just Foreign Bank Account Reporting, but rather Foreign Bank and Financial Account Reporting.

Therefore, taxpayers must report more than just a checking or savings bank account.

Rather, investment accounts are reportable as well. Moreover, the FBAR mutual fund requirement can be unnecessarily complex — especially when reconciling the FBAR and tax requirement reporting.

Investment Account Value for FBAR

Generally, the total highest or maximum value of the account is reported.

The filer will find the date that shows the highest annual aggregate total and report that total. Since the investments are in an account — they are not reported individually.

Mutual Funds & FBAR

If the mutual funds are in an investment account, then the investment account is reported.

But, if the taxpayer has individual Mutual Funds, then the individual funds are generally reported on the FBAR.

Unlike a stock certificate, which is not an account and not reportable on the FBAR, the mutual fund will usually have an account number and therefore should presumably be reported on the FBAR.

If the Mutual Funds are in an account, then the account number — not the individual funds — is reported for FBAR.

Depending on the value of the Mutual Funds and/or if there were any excess distributions will impact if the Form 8621 is also filed.

FBAR Lawyers For Mutual Funds and Investment Late Reporting

Our FBAR Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure, including mutual fund FBAR disclosure.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.

Each case is led by a Board-Certified Tax Law Specialistwith 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.

*Please beware of copycat tax and law firms misleading the public about their credentials and experience.

Less than 1% of Tax Attorneys Nationwide AreCertified Specialists

Sean M. Goldingis one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Case Highlights

We represented a client in an 8-figure disclosure that spanned 7 countries.
We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.

How to Hire Experienced Offshore Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

20-years experience as a practicing attorney
Extensive litigation, high-stakes audit and trial experience
Board Certified Tax Law Specialist credential
Master’s of Tax Law (LL.M.)
Dually Licensed as an EA (Enrolled Agent) or CPA

Interested in Learning More about Golding & Golding?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant.

Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.

Certainly! The article you've provided discusses the FBAR (Report of Foreign Bank and Financial Accounts) reporting requirements concerning mutual funds and investment accounts held by U.S. persons. As an expert in international tax and compliance, I can shed light on the intricacies of FBAR reporting for these financial assets.

FBAR reporting is mandatory for U.S. persons holding foreign financial accounts, including not only traditional bank accounts but also investment accounts. The complexity arises when determining how to report these accounts, particularly when dealing with mutual funds and individual investment holdings.

Here's a breakdown of the concepts used in the article:

FBAR and Investment Accounts:
- FBAR isn't limited to bank accounts; it encompasses various financial accounts, including investment accounts.
- U.S. persons must report the highest value of their foreign investment accounts during a calendar year.
Mutual Funds & FBAR:
- If mutual funds are held within an investment account, the entire investment account is reported on the FBAR.
- However, if the taxpayer has individual mutual funds outside of a consolidated account, these individual funds are generally reported separately.
Reporting Individual Mutual Funds:
- Unlike stock certificates, which aren't considered accounts, mutual funds usually have account numbers and should be reported individually on the FBAR if held separately.
FBAR Lawyers for Mutual Funds and Investment Late Reporting:
- Legal firms specializing in international tax, such as Golding & Golding, provide expertise in FBAR disclosures, especially concerning complex cases involving various countries and substantial assets.
Credentials and Experience for Offshore Counsel:
- Expertise in this field typically involves extensive experience as a practicing attorney, specialized certifications (such as being a Board-Certified Tax Law Specialist), and a track record in successfully handling offshore disclosures for clients.
Hiring Experienced Offshore Counsel:
- Recommendations for hiring experienced attorneys in international tax and compliance include looking for specific credentials like Board Certification, years of experience, and success stories in handling offshore disclosures.

Golding & Golding is highlighted in the article as a reputable firm specializing in FBAR and FATCA compliance, boasting a team with extensive experience in international tax matters. They focus on assisting individuals worldwide in becoming IRS offshore compliant.

If you're navigating FBAR reporting for mutual funds or investment accounts, seeking assistance from a specialized firm like Golding & Golding could ensure proper compliance with U.S. tax regulations concerning foreign financial assets.