Sch B Part III

[ILLMAS]

I have a TP that is non-resident, he does not live in the U.S. and his entry into the U.S. is for work related.  He does own a rental property and declares it on his 1040NR, however he had interest income over $1,500, would he still have to fill out FBAR?  I thought when one was a non resident you don't have to disclose your world wide income (including foreign bank accounts)

[jklcpa]

No, because your client is a nonresident.

https://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

and the FBAR reporting requirements are for "United States Persons" defined below:

Quote

United States Person. United States person means United States citizens (including minor children); United States 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.
Note. The federal tax treatment of an entity does not determine whether the entity has an FBAR filing requirement. For example, an entity that is disregarded for purposes of Title 26 of the United States Code must file an FBAR, if otherwise required to do so. Similarly, a trust for which the trust income, deductions, or credits are taken into account by another person for purposes of Title 26 of the United States Code must file an FBAR, if otherwise required to do so.

 

[Pacun]

I see this way:

If the $1,500 are directly related to the US, you have to report them on 1040NR. If it is not related, I wouldn't pay taxes on it. If it is directly related to the US, then no need for FBAR because you are using an U.S. source to make that income.

FBAR is for Legal Permanent Residents and U.S. Citizens if I recall correctly.

[SaraEA]

On a different note from the resident/nonresident rules, the FBAR is required when one has a foreign bank account balance in excess of $10k. Income has nothing to do with it.  I know, in the US today you'd need a balance of a zillion dollars to earn $1500 in interest, but in perhaps India and some other places you might earn that much on less than $10k.