FBAR basics...

This is our first full year in the UK and we are wondering about the FBAR.
1-Does it work on a 1 Jan  to 31 Dec calendar? So the 15 Oct 2019 deadline to file is for assets in accounts during that time?
2-This is totally separate from taxes? They just want a money trail?
3-This is the biggest and most important question!! There is no penalty for having assets over the $10,000 in an account in the UK?

Any other basic beginners info we need to be aware of???

Thanks,
NWKH

This is our first full year in the UK and we are wondering about the FBAR.
1-Does it work on a 1 Jan  to 31 Dec calendar? So the 15 Oct 2019 deadline to file is for assets in accounts during that time?
2-This is totally separate from taxes? They just want a money trail?
3-This is the biggest and most important question!! There is no penalty for having assets over the $10,000 in an account in the UK?

Any other basic beginners info we need to be aware of???

Thanks,
NWKH

Correct on all points I think.

https://www.fincen.gov/sites/default/files/shared/FBAR_Due_Date_Clarification_PD02-02-2018.pdf

To implement the statute with
minimal burden, FinCEN will grant filers failing to meet the FBAR annual due date of April 15
an automatic extension to October 15 each year. Accordingly, specific requests for this
extension are not required.

Hi NWKH,
Disclaimer: I am not a tax professional. Anything stated here is just my experience.
 
1- yes, FBAR is for calendar years
2. yes, this is separate from taxes.  The intent is to find anyone who is hiding funds from the US tax authorities. If you are so hiding, then you should have your financial people guiding your FBAR responses.
3. There is no penalty for having more than any given amount of assets (at least within my order of magnitude).  I have moved funds over from the US and deposited into my pension pot here which is now larger than $10k (lower 6 figures by this point). I don't worry about reporting this amount on the FBAR form. If you have a few more zeros on your account balances than I do, then you should again let your financial team provide guidance.

The main point is to keep in mind that it is a US criminal (not civil) offense to fail to report. My suggestion is to work your way through the form and file it. Again, this Act is to capture money launderers and other criminals. Just like Al Capone was put into jail for not filing income tax, this law allows the Feds to go after some of the ugly folks out there for not filing/inaccurate filing.
 
Unfortunately, it is only us "ordinary" folks who will get caught up with FBAR as those with millions of USD will have the accountants earn their fees. 

Initially, the deadline was different from the IRS deadlines. While the deadline has been altered to be in sync with the IRS filing dates and the rules read that you can get an auto-extension to the Fall because you are out of the US, I just make it a point to get the FBAR forms done before April 15th and get it over with. My pension pot provider (the equivalent of the 401k administrator) over the past couple of years has been sending me quarterly account updates after I had to ask in the earlier years what the balance was on 31December. (As I was making contributions from my monthly salary, I figured that the year-end value would be the highest value for the calendar year.)

For the standard bank accounts, I just walk through the year’s statements and note the highest account balance as I go.

Also note that they want the USD equivalent based on the 31Dec year-end exchange rate, not the exchange rate in effect on the date the bank accounts totalled more than $10k.
Hope this helps.
 
 
addition made the next day:
To clarify a possibly ambiguous statement I made above:
"I don't worry about reporting this amount on the FBAR form."

I DO report this amount.  I just don't worry about any ill effects from reporting it.

FBAR – Great Question. An FBAR reports many more kinds of accounts for many folks than just bank accounts. An FBAR may need to report debit cards, credit cards, pre-paid credit cards, electronic wallets, pension plans, PayPal accounts, money transfer accounts, online gambling, NS&I accounts, accounts with online or app based challenger financial institutions, insurance plans, investment accounts, ISAs, pension plans, cryto asset accounts and loads of other stuff that might not be entirely obvious.