Do you need to file a FBAR?
Learn the required disclosures and filings related to financial assets held outside the USA.
What has changed to require the FBAR?
As of 2014, under certain provisions of FATCA, foreign financial institutions will be required to collect information. This information will be relayed to the IRS about assets held by US persons with that institution. The FATCA rules will make it very easy for the IRS to cross-reference the information provided with the taxpayer’s Form 1040.
What has to be reported?
Many persons are under the mistaken belief that if one has several overseas accounts and a particular account is not over $10,000 then that account does not have to be reported. This is incorrect. Remember, if the highest aggregate value of all of the foreign accounts on any day in the tax year is over $10,000, then all accounts must be reported on the FBAR.
Who should file an FBAR?
US persons who have ownership or control (for example signature authority) of foreign accounts with an aggregate value of over $10,000 in the calendar year: FBAR filing required.
What are the penalties for not filing?
The penalties for not following mandatory FBAR regulations can be severe. If the failure to file isn’t willful, the penalty can reach $10,000, unless it was due to reasonable cause.
What is the FBAR Filing Deadline?
The due date is typically April 15th, with an automatic extension of 2 months for US citizens living abroad. An additional extension is also available.
Where can I get more information?
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