As of: 1/15/21 12:08 PM
Received: January 15, 2021
Status: Non_Public
Tracking No. kjy-8b0a-499v
Comments Due: January 15, 2021
Submission Type: Web

Docket: FINCEN-2020-0013
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Foreign Financial Accounts Regulations and FinCEN Report 114, Report of Foreign Bank And Financial Accounts

Comment On: FINCEN-2020-0013-0001
Agency Information Collection Activities; Proposals, Submissions, and Approvals: Renewal Without Change of Reports of Foreign Financial Accounts Regulations and FinCEN Report 114, Report of Foreign Bank and Financial Accounts

Document: FINCEN-2020-0013-DRAFT-0046
Comment on FR Doc # 2020-25216

Submitter Information

Name: Mahua Cavanagh
Address: United States, 

General Comment

I am a US citizen living abroad. I am also resident abroad with a local personal bank account. I agree with another commenter in that:

1) You have way underestimated the cost of time and money to file an FBAR.

2) This form serves no purpose any more. Form 8938 is now part of the US 1040 and all the same information is reported there. Either (a) get rid of the 8938 or (b) get rid of the FBAR. This duplicated effort is time consuming for US citizens as they first have to enter it all into their tax programme and again re-enter it all into the BAE system. Citizens prefer getting rid of the FBAR as this way US citizens only have one form to file every year: their US tax return.

3) Having a penalty the size this form has without linking the penalty to the amount of tax due is in flagrant disrgard of the Eighth Amendment. I know you don't enforce it - ever - to the full extent, but having the penalty match what you DO enforce would be fairer. You already have the Delinquent FBAR Submission dropping the penalty to zero. This is much appreciated by late filers. You should continue this outreach to US citizens by making the penalty no more than the tax due on the unreported accounts. If the additional tax due on the unreported account is $50, the penalty should be no more than $50. Having it be $10K no matter what the size of the account means you have to waste a lot of man hours for your staff to choose just how much you are going to settle for.

4) Many foreign banks are closing their doors to US citizens due to not wanting to deal with FATCA on their end. By ending this form, you would make it easier for US citizens who live and work abroad to open bank accounts in their home country, be added onto an elderly foreign parent's bank account for help with their care, and have pension accounts where they live.