Which Form 8854 Exclusion 2023-2024

Hi, my name is Jimmy Sexton, the president of Esquire Group. Welcome to part two of our four-part series on the tax obligations of US citizens and residents residing abroad. In part one, we discussed the income tax reporting requirements of Americans abroad. In part two, we're going to be discussing the F bar. The F bar is the report of foreign bank and financial accounts. The F bar has been law for many years, but it has only recently been publicized and is now widely known by many US citizens and residents abroad. Essentially, the F bar requires that you report accounts over which you have signature authority or a financial interest. So, let's first determine what is considered a foreign financial account. At first glance, you might think it refers to a bank account or a brokerage account, and you would be correct. It includes both of those, but it could also include foreign mutual funds, foreign security deposits on a rented residence, insurance policies, annuities, and even metal storage accounts. All of these are considered foreign financial accounts. Now, you have to determine whether you have signature authority or a financial interest in those accounts. Signature authority is pretty straightforward. If you sign on the account and it's in your name, you have signature authority and it is required to be reported. The second part, a financial interest, is a bit less clear. For example, what if the account is not in your name but in your spouse's name? And what if you don't have access to it, but you transfer part of your paycheck into that account every month to help pay household bills? Well, because that account contains some of your money, you have a financial interest in that account and it is also reportable. Now, let's discuss...