We prepare and file the Report of Foreign Bank And Financial Accounts (FinCEN Form 114 - formerly known as the Form TD F 90.22-1) for individuals and businesses who are required to file the report.
Am I required to file the FBAR?
Did you have an interest in, or signature authority over, a foreign financial account or accounts with an aggregate value over $10,000 at any time during the year?
It makes no difference if the average amount in the accounts during year is less than $10,000 or if all the money is withdrawn by the end of year. If the accounts held more than $10,000 any time during the year, the FBAR must be filed.
Additionally, if you have any foreign account that has non-monetary assets of more than $10,000, for example, the cash surrender value of a life insurance policy, you are required file an FBAR.
What is the due date of the FBAR?
Beginning in 2017, the FBAR must be filed with the Department of Treasury IRS by April 15th of each year by electronically filing it using the US Department of the Treasury's Financial Crimes Enforcement Network E-Filing System. Important! The FBAR is not filed with your income tax return and must be filed separately.
Can I get an extenison to file the FBAR?
No. For the years up to and including 2016 (2015 FBAR).
Beginning in 2017, a maximum extension for a 6-month period ending on October 15th is possible.
What are the penalties for failing to file the FBAR?
There is a maximum $10,000 penalty if your failure to file was inadvertent. if you are found guilty of willfully not filing an FBAR, the minimum fine is $100,000 or half the value of the account, whichever is greater.
How do I file the FBAR?
Effective July 1, 2013, FBARs are required to be filed electronically on the Bank Secrecy Act E-Filing System website. The FBAR is a separate filing from your income tax return and is not attached to your tax return.
Signature or authority means the authority of an individual (alone or in conjunction with another) to control the disposition of money, funds or other assets held in a financial account by direct communication (whether in writing or otherwise) to the person with whom the financial account is maintained.
How do I authorize my spouse or my accountant to file my FBAR?
Filers who submit Reports of Foreign Bank and Financial Accounts (FBARs) jointly with spouses, or wish to submit them via third-party preparers such as your accountant, please complete the FinCEN Form 114(a). A copy is maintained by the filer and the account owner. DO NOT submit to FinCEN or the IRS unless requested to do so.
Which foreign accounts must be reported on the FinCEN Form 114?
Looking for a way to keep track of your foreign bank account balances for the FBAR? Download our Foreign Bank and Financial Account Tracker.