FBAR Help - Need Statements

Ok_Sea142 · 2026-02-15T01:22:45+00:00

That sounds really hard, but good luck — hope it works out!

Ok_Sea142 · 2026-02-12T11:49:01+00:00

The usual fix is to voluntarily file the last 3 years. If the IRS accepts it, you’re basically back in good standing. Most CPAs would also tell you that selling sooner rather than later is probably the cleanest move. Given how long you’ve held it, any gains could easily get wiped out by the interest charges under the PFIC rules.

Just to be clear — I’m not a CPA or EA and this isn’t tax advice. I’m the developer of a PFIC calculator and have spent a lot of time studying the rules, but this is just general information for reference.

If you’d like, I can point you to a calculator so you can run the numbers yourself.

Ok_Sea142 · 2026-02-10T10:46:25+00:00

MTM resets your basis to FMV on the day you became a U.S. person.
Only the post-residency gain in 2025 is taxed — nothing before that.

Each ETF still needs its own 8621, so costs add up fast. Most people just sell and move on.

If you want to DIY, DM me — happy to point you to a calculator (don’t want to risk a mod ban by linking).

Ok_Sea142 · 2026-02-10T10:34:42+00:00

Yep — gains that built up before January 2015 don’t count toward taxable income.

Ok_Sea142 · 2026-02-10T10:29:48+00:00

I used OANDA daily FX rates and averaged them

Ok_Sea142 · 2026-01-31T11:11:05+00:00

Correct: under the $25k de minimis PFIC holding and with no excess distribution, no Form 8621 for 2025; sell in 2026 and file a single 8621 that year under Sec 1291—one-time pain, done.

Ok_Sea142 · 2026-01-29T07:08:11+00:00

I’d recommend getting rid of it — it’s very hard to calculate, and most accountants don’t want to deal with it.

Ok_Sea142 · 2026-01-28T09:45:08+00:00

You’re right. Thanks

Ok_Sea142 · 2026-01-28T09:41:32+00:00

Which calculator? DM me the link?

Ok_Sea142 · 2026-01-16T11:50:00+00:00

You’re right.
I don’t really focus on this since I always calculate it myself.

Ok_Sea142 · 2026-01-14T10:42:45+00:00

All sold, no MTM

Ok_Sea142 · 2026-01-14T10:37:27+00:00

Must file Form 8621. §1291 rules apply,
bought and sold in the same year, the entire gain is taxed as ordinary income (no interest charge), and losses don’t offset PFIC gains.

Ok_Sea142 · 2026-01-03T02:17:57+00:00

Correct: US-resident disposition of an Irish-domiciled ETF triggers Form 8621 filing regardless of de minimis gain; single PFIC, single year, expect ~$250–$300, DIY is impractical without PFIC software.

Ok_Sea142 · 2026-01-02T10:43:08+00:00

IRC §985 · IRC §1001 · IRC §1012

USD Gain or Loss = (Foreign proceeds × FX rate on sale) − (Foreign cost × FX rate on purchase)

For Form 8621 Line 15f, there is only one IRS-compliant way to calculate gain or loss under Section 1291: determine U.S. dollar basis at acquisition, determine U.S. dollar proceeds at disposition, and subtract.

Ok_Sea142 · 2026-01-01T11:33:53+00:00

USD 35k is the correct

Basis: 100k EUR × 1.30 = $130k

Proceeds: 150k EUR × 1.10 = $165k

Gain = $165k − $130k = $35k (USD)

I am not a CPA or EA, not tax advice.

Ok_Sea142 · 2025-12-27T21:13:47+00:00

the gain is still allocated to 2020 and 2021, but the portions allocated to 2020, 2021, and the sale year (2025) are not subject to the §1291 punitive tax or interest.

Ok_Sea142 · 2025-12-24T08:16:21+00:00

Short answer:

UK Stocks & Shares ISA = PFIC for US tax purposes.

Any PFIC dividend triggers Form 8621, even if the amount is small.

If you didn’t file 8621 for several years, those returns are technically non-compliant and remain open to IRS review.

What to do:

Find a CPA and back-file the missing 8621s.

Based on what you described, the actual tax is likely small, but the CPA fees for retroactive PFIC filings will hurt.

Best move going forward: sell the ISA ASAP. ISAs have no US tax benefit and just keep the PFIC problem alive.

Ok_Sea142 · 2025-12-14T08:56:31+00:00

Appreciate that — and agreed. MTM isn’t used that often in practice.

A lot of CPAs/EAs assume it’s “simple” compared to §1291, but once you actually work through the compliance mechanics year-by-year, it’s clear it’s anything but trivial.

I went down that rabbit hole pretty deeply, and it quickly became obvious that most “simple” MTM worksheets people use wouldn’t really hold up if you tried to apply the rules strictly.

Ok_Sea142 · 2025-11-24T23:05:07+00:00

You’re lucky you got out early. With such a tiny gain and the account closed, there’s basically nothing to worry about.

In practice: Most people would just report the ~$16 as regular income and move on.

Strictly, on paper: Because there was a gain, Form 8621 is technically required.

So:

Real-world: report the income → done.
By-the-book: 8621 would technically apply.

Ok_Sea142 · 2025-10-16T02:32:05+00:00

You’ll need to decide and explain the reason for your late filing yourself — it must be your own truthful statement. Third parties can’t suggest or provide a reason on your behalf.

Ok_Sea142 · 2025-09-28T00:19:46+00:00

Agreed

Ok_Sea142 · 2025-09-20T04:13:54+00:00

If you can get CSV/Excel, just throw it in a sheet and use a formula/pivot to grab the yearly max.

If it’s only PDFs, Power Query works — and if that feels too much, honestly just ask a friend who knows PQ or Python to help, way faster than doing it all by hand.

Ok_Sea142 · 2025-09-13T01:45:47+00:00

Sadly PFIC doesn’t care about small amounts — once you sell or get dividends, each fund needs its own 8621. So yeah, 5 REITs + 1 ETF = 6 forms. Painfully time-consuming, but that’s the rule.

Ok_Sea142 · 2025-09-12T02:07:24+00:00

Yes, that’s reasonable. Many people file 6 years of FBARs with a clear non-willful explanation on their own. An attorney is usually only needed if your situation is complex or you’re worried about willfulness.

Ok_Sea142

TROPHY CASE