Should U.S. Citiznes living overseas be scared of the FBAR form?

What a terrible thing.
You earn money and are taxed at source but have to pay tax again to an government, even you aren't in the country.
I see why some Americans are tearing up their passports.

The world would agree with you as only a few (maybe 3) have the requirement to file even if you don't live in that country.  It's all part of the U.S.'s FATCA treaty to try to force banks overseas to give up information on U.S. Citizen accounts in their country.  They will then check that list against the FBAR forms filed.  If no FBAR has been filed (and no tax is due on the FBAR ever), then the penalty is 50% of the amount in the account.

A widow in Europe found out that her husband had $42million in a Liechtenstein bank and didn't report it when it became hers after his death on any FBAR reporting.  The IRS found out and her penalty was $21,000,000 which she has now paid.  Crazy.

The form is easy to use and, like I said, there is no tax due on the FBAR - it is information only.

On the tax side of things, in most countries, the tax paid on the income is more than would be due to the U.S. (some exceptions are UAE, Russia, Singapore, Hong Kong and a few others).   With those countries you get a full credit for the tax paid and the tax return shows zero due.

It's just a hassle to have to file the return and the FBAR annually, but the legislation is in the works to not renew any U.S. Citizen passports if tax returns are not yet filed.  The long arm of the IRS will force compliance.

It's not all that difficult to file a tax return on time.  I've never understood why so many people wait until the last minute.

for some people it's the principle of the thing, that despite long-term residences in other countries and no assets in the US, the country continues to keep a chokehold on its passport holders. None of the American expats I know think this is a fair and reasonable bunch of rules that we are required to do this every.single.fekking.year.

It's not fair, but filling out a form is better than some ridiculous Willie Nelson fine and not being able to renew your passport.

The IRS is really cracking down. Here's a helpful video, if you're interested.

Understanding IRS OVDP & FATCA

I think for new expats, it's just not on the radar right away. It takes a few tries to get in the habit.

Yes they are serious and yes you actually have to report real estate holdings as well.  We have no assets in the US but still file returns every year and this year with over the limit in our accounts here we are reporting the bank accounts as well. Do  not the banks are reporting to the IRS so you better as well.

Bob K

I've never had any problems.  Is that because I file taxes or because I know that our tax rates are a lot lower than many other places?

Hi, I'm new to Expatblog,
While the topic at this forum is FBAR, if any of you want to know about a serious, now in the courts legal action against FATCA and IGA, take a look at #2 posting over in the Brazil Forum called FATCA & FBAR; who'd running the show here anyway? 
Happy New Year
LLGM