This is my first time knowing I have to file FBAR since coming back to Hong Kong almost two years ago and I have already encountered so many problems and questions that require me to hire a licensed CPA for consultation. And they are not cheap! I am broke af but I don't want the IRS come knocking on the door telling me I owe them anything or having to bear the consequence of getting penalize for not reporting my foreign assets correctly.
This is just my two cents, seriously isn't the $10,000 USD threshold of all combined foreign financial accounts a little too low for FBAR!? And I haven't confirmed this but I think this threshold hasn't changed since the policy was first established? Shouldn't they at least factor in inflation?? I mean $10,000 USD in the 80s are certainly worth way more than the $10,000 USD today! Even as a low income worker here in HK I find this requirement just easily be met... I get it the IRS doesn't want anyone to evade U.S. taxes and probably also wants to level out the playing field for U.S firms so not everyone would just go invest in a foreign country where the investments there are not heavily taxed. But come on shouldn't they bump that threshold to at least $100,000 if their main concerns are the wealthy hiding money offshore!? Seriously do they think someone with the intention to evade tax would only have $10k in foreign assets? If they want to waste money investing someone who only has $10k offshore be my guest... but the chances are they don't have that resource and simply not cost effective.
Since I am trying to be a good citizen and don't want to risk anything, I have to pay thousands of USD just to report FBAR for the years I have missed and amend my tax return. Many might wonder why don't I just do it myself and report it online, well it turns out my parents bought me multiple life insurances in Hong Kong when I was a kid that might be taxable and has cash value in the eyes of the IRS (still I have less than $40K in all my combined foreign financial accounts...). This is why I need an expert so I don't fall for any tax traps!
Sorry for the venting, I just needed to let it out. Also, if anyone has knowledge or advice regarding my case feel free to leave a comment! xo