Hello,

If a German citizen held an F1 student visa from 2005 until late 2011 and then switched to an E2 visa in late 2011, do they have to file an FBAR to declare their foreign accounts for 2011?

Your help is much appreciated, thank you!

Peter

Peter:

The exemption from the Substantial Presence Test ENDS after five calendar years for international students on F-1 visas UNLESS they submit Forms 8843 and 8840 to show a "closer connection" to your home country.

Assuming you did NOT file these forms for 2010, you became a resident alien in 2010, and SHOULD have filed a normal tax return (Form 1040/1040A/1040EZ) for 2010. This also made you liable for the FBAR report on all of your foreign financial accounts IF, in aggregate, those accounts exceeded $10,000 at any time in 2010. Since it appears you were NOT aware of this, you are already LATE for filing the FBAR for 2010, but you can submit late and probably avoid any penalties with a cover letter explaining the situation.

An FBAR is also required for 2011 under the same conditions and must be mailed to the IRS, to be received by them no later than 30 June 2012. No extensions!

If your balances exceeded $50,000 in 2011, you also get to file Form 8938 to report those accounts. This form is filed WITH your 2011 tax return.

If you believe that you will need professional help filing this year, this IS what I do. Please double-click on my name (Atlanta Tax Expert) above to access my profile. You will find my email address in the signature portion of the profile.