FBAR - Foreign Bank Account Reporting

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It makes no difference if the average amount in the accounts during year is less than $10,000 or if all the money is withdrawn by the end of year.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?

June 30th.

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.

What does signature or other authority mean?

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?

Financial (deposit and custodial) accounts held at foreign financial institutions

Yes

Financial account held at a foreign branch of a U.S. financial institution

Yes

Financial account held at a U.S. branch of a foreign financial institution

No

Foreign financial account for which you have signature authority

Yes, subject to exceptions

Foreign stock or securities held in a financial account at a foreign financial institution

The account itself is subject to reporting, but the contents of the account do not have to be separately reported

Foreign stock or securities not held in a financial account

No

Foreign partnership interests

No

Indirect interests in foreign financial assets through an entity

Yes, if sufficient ownership or beneficial interest (i.e., a greater than 50 percent interest) in the entity. See instructions for further detail.

Foreign mutual funds

Yes

Domestic mutual fund investing in foreign stocks and securities

No

Foreign accounts and foreign non-account investment assets held by foreign or domestic grantor trust for which you are the grantor

Yes, as to foreign accounts

Foreign-issued life insurance or annuity contract with a cash-value

Yes

Foreign hedge funds and foreign private equity funds

No

Foreign real estate held directly

No

Foreign real estate held through a foreign entity

No

Foreign currency held directly

No

Precious Metals held directly

No

Personal property, held directly, such as art, antiques, jewelry, cars and other collectibles

No

‘Social Security’- type program benefits provided by a foreign government

No

Source: www.irs.gov

Looking for a way to keep track of your foreign bank account balances for the FBAR? Download our Foreign Bank and Financial Account Tracker.

(Excel) Foreign Bank and Financial Account Tracker