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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If I am President of a U.S. Company that owns 100% of a foreign

Customer Question

If I am President of a U.S. Company that owns 100% of a foreign subsidiary, but I am not a direct signatory on the bank accounts of the foreign subsidiary, do I still need to file an FBAR? I assume the Company is required to file, but under what section does the Company report the accounts?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,
Is the company a C-Corporation? (separate taxable entity filing an 1120)
Or is the U.S. company a passthrough, such as a partnership, LLC or S-Corp?
Let me know and we can go from there
lane
Customer: replied 1 year ago.

The U.S. Company is a C-Corp. We do not consolidate for tax purposes. The foreign subsidiary has no operations in the U.S.

Expert:  Lane replied 1 year ago.
Then it's th C-Corp that files, not you.
See this from IRS:
Who Must File an FBAR
United States persons are required to file an FBAR if:
the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
The C-Corp is considered U.S person under title 26 and under the state corporate law in your state.
Less obvious with pass-throughs
The C-Corp files, here, if the C-Corp owns the accounts and meets the criteria.
Lane

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