What's the difference between signature authority and financial interest for FBAR filing requirements?

Thanks for explaining! So if I'm on my elderly parent's account just to help them manage it but the money is entirely theirs, would that be just signature authority then? I help my dad with his Canadian retirement account but I'm not entitled to any of it.

For your parents' account situation, that would typically be signature authority only. If you're just helping manage the account but have no legal claim to the money (you're not a joint owner and wouldn't inherit the money if your parent passed away), then you only have signature authority. Many people end up in this situation when helping elderly parents with their finances. You'd still need to report the account on the FBAR if it exceeds $10,000, but you'd mark it as signature authority rather than financial interest.

Does it work with accounts from multiple countries? I have accounts in Switzerland and Japan because of work assignments, plus my US accounts.

I'm skeptical about trusting tax software with sensitive foreign account info. How does it handle security? Can't the IRS access that data if they wanted?

It absolutely handles accounts from multiple countries. I had accounts in the UK, Mexico, and Canada, and it processed all of them correctly with the proper currency conversions for FBAR reporting purposes. Regarding security concerns, they use bank-level encryption and their system doesn't store your raw financial data after processing. It's actually more secure than emailing documents to a tax preparer. The IRS can't directly access the information - you still control what you submit to them.

Wait, how does this actually work? Does it just connect you to the regular IRS line or do they have special access? I've been on hold with the IRS for literally 3+ hours multiple times.

This sounds like BS honestly. Nobody gets through to the IRS that quick. They probably just connect you to some random call center that pretends to be the IRS and gives you wrong info.

It connects you to the actual IRS line, but they have technology that navigates all the phone trees and waits on hold for you. When an actual IRS agent picks up, you get a call back immediately and they connect you. It's the same IRS agents everyone else talks to, but without the hours of waiting. They definitely connect you with real IRS agents, not a call center. I confirmed it because the agent I spoke with accessed my actual tax records and knew details about my previous filings that only the IRS would have.

Thanks for pointing that out! Do you know if I need to count accounts where I'm just helping someone else (like signature authority only) in that combined total? Or just the ones where I have financial interest?

You need to count ALL foreign accounts where you have either financial interest OR signature authority when determining if you meet the $10,000 threshold. So yes, accounts where you're just helping someone else (signature authority only) count toward that combined total. Once you determine you need to file the FBAR (by exceeding $10k across all foreign accounts), you must report ALL foreign accounts regardless of their individual balances - even accounts with just a few dollars in them. The IRS is really strict about this!

Those penalties sound terrifying. Is there any way to fix it if you didn't know you were supposed to file in previous years? I just realized I probably should have been filing these for years...

If you missed filing FBARs in previous years, there are a few options depending on your situation. The IRS has the Delinquent FBAR Submission Procedures for people who missed filings but weren't trying to hide anything. You can file the missing FBARs with a statement explaining the reasonable cause for the late filing. For more complex situations involving unreported income, there's the Streamlined Filing Compliance Procedures. The key is demonstrating that your failure to file was non-willful. Don't ignore it though - the IRS tends to be more lenient with voluntary disclosures than if they discover it during an audit. Consider consulting a tax professional who specializes in international compliance to help navigate your specific situation.