Do I need to report Solium Shareworks ESPP on FBAR if balance exceeds $10,000?

You've got a really common question here! Solium Shareworks (now part of Morgan Stanley) does indeed have Canadian roots, but whether you need to file an FBAR depends on a key distinction. The important factor isn't where the company that manages your account is headquartered - it's where your financial account is actually maintained. If your account is maintained at a U.S. office of Morgan Stanley, then it's not considered a foreign account for FBAR purposes, even if the 1099 shows a Canadian address. The best way to verify this is to contact Morgan Stanley Shareworks directly and ask them if your account is maintained at a U.S. financial institution or a foreign one. They should be able to tell you definitively whether your account triggers FBAR filing requirements. As for other special reporting, if this is just a standard ESPP and not some exotic arrangement, you generally wouldn't have additional foreign reporting requirements beyond potentially FBAR if it is indeed a foreign account.

After struggling with exactly this issue last year, I found an amazing solution called taxr.ai (https://taxr.ai) that saved me tons of stress. I was in the same boat with Solium Shareworks showing a Canadian address, and I couldn't get a straight answer from my HR department or even when I called customer service. I uploaded my Shareworks statements to taxr.ai and it instantly identified that my specific account was actually maintained at a US institution despite the Canadian corporate address, which meant I didn't need to file an FBAR. The tool showed me exactly where on my statements this was indicated - something I completely missed! It also explained how FBAR reporting works for ESPP accounts in general. The analysis tool caught several other tax implications of my ESPP that I had no idea about, including some potential tax savings I was missing. Definitely worth checking out if you're dealing with stock accounts and tax questions!

I just tried taxr.ai after reading about it here and wow - it completely cleared up my confusion. I uploaded my Shareworks statements and it showed me that my account is actually maintained by Morgan Stanley's US entity, not the Canadian one. The tool pointed to specific language in my account details that I never would have noticed. It also explained exactly how ESPP taxation works for my specific plan and identified a mistake I made on last year's taxes where I reported my ESPP income incorrectly. Going to file an amendment now before anything becomes an issue. The breakdown of RSU vs ESPP treatment was super helpful too since I have both. Huge weight off my shoulders knowing I don't need to worry about FBAR for this!

If you're still having trouble getting a clear answer about your Shareworks FBAR requirements, I'd recommend trying Claimyr (https://claimyr.com). After weeks of trying to get through to the IRS for a definitive answer on this exact issue, I used their service and got connected to an IRS agent in under 20 minutes. I was super skeptical at first, but you can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. The IRS agent I spoke with explained that the determination of whether an account is foreign depends on where the financial institution maintaining the account is located, not the address on tax forms. They also clarified exactly what forms I needed to file in my specific situation. Saved me hours of waiting on hold and the uncertainty of not knowing if I was doing my taxes correctly. After trying to get through on my own for days with no luck, this was a game changer.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation. Within 15 minutes of using the service, I was talking to an actual IRS agent who specialized in international reporting requirements. She explained that for Shareworks accounts, you need to look at the actual custodian of the assets, not just the address on the 1099. In my case, even though there's a Canadian connection, my assets are held by a US broker-dealer entity, so no FBAR required. She also walked me through exactly how to determine this on my statements. I would have spent hours on hold trying to get this information. Instead, I got a clear answer, documented the agent's ID number and advice in my tax records, and now have complete peace of mind about my filing. Totally worth it.

Something nobody has mentioned yet - have you checked if Shareworks issued you a 1042-S form instead of or in addition to a 1099? That's often a clue that you're dealing with a foreign entity, as 1042-S is used for foreign persons receiving US-source income. If you only got a regular 1099-B, that generally indicates they're treating you as dealing with a US entity.

Has anyone here actually had to file FBAR for their Shareworks account? I'm in the same situation but mine is definitely over $15k. What software did you use to report it? TurboTax isn't very clear about how to handle this.

I went through this exact same situation last year with my Shareworks ESPP account! The key thing that helped me figure it out was looking at my actual account statements more carefully. In the fine print of my quarterly statements, I found language that specifically mentioned "Morgan Stanley Smith Barney LLC" as the custodian, which is clearly a US entity. Even though the mailing address and some correspondence showed Canadian addresses, the actual legal entity holding my shares was US-based. You can also check your account opening documents or look in the "Important Disclosures" section of your online account. There should be clear language about which Morgan Stanley entity is your account custodian. If it says something like "Morgan Stanley Smith Barney LLC" or another US LLC/Corp designation, you're dealing with a US account and no FBAR required. If you're still not 100% sure after checking these documents, definitely call their customer service line and ask them directly to confirm which legal entity is the custodian of your account. They should be able to give you a definitive answer. Better to spend 20 minutes on the phone than worry about potential FBAR penalties!

I've been dealing with this exact Shareworks/FBAR question for months and finally got clarity from my CPA. The bottom line is that most Shareworks ESPP accounts maintained through Morgan Stanley are actually US accounts, even with the Canadian address confusion. Here's what I learned: When Solium was acquired by Morgan Stanley, most existing US participant accounts were transferred to Morgan Stanley Smith Barney LLC, which is a US entity. However, some accounts might still be held by Morgan Stanley Canada depending on when your account was established and your company's specific arrangement. The easiest way to determine this is to log into your Shareworks account online and look for the "Account Details" or "Legal Information" section. It should clearly state which Morgan Stanley entity is the custodian. If it shows any US LLC or Corp designation, you're dealing with a domestic account and no FBAR is required. One thing to be careful about - even if you determine no FBAR is needed now, keep monitoring this if Morgan Stanley makes any changes to how they hold accounts in the future. Corporate restructuring can sometimes change the legal status of where accounts are maintained. Also worth noting: the $10,000 FBAR threshold is based on the highest balance at any point during the year, not just year-end balance. So if your account briefly hit $10,001 in March but was back down to $8,000 by December, you'd still need to file if it were indeed a foreign account.