FBAR

What is FBAR ?

The FBAR is an information return, as opposed to a tax return, as it does not generate tax or amounts due. It is required of U.S. citizens, Resident Aliens, and U.S. Companies with financial accounts located outside the U.S., of which the total of the balances of those accounts exceed $10,000 USD at any time during the calendar year. The form is required to be filed by individuals and companies who own, have an interest in, or have signature authority over foreign accounts

FBAR Requirements

if you have financial accounts held outside the U.S. total of which exceeds $10,000 USD at any time during the calendar year, you have a reporting requirement. This includes accounts for which you have a signing authority but no ownership. Foreign financial accounts include, but are not limited to: checking, savings, brokerage accounts, and foreign mutual funds, as well as certain life insurance policies that accumulate value. In addition, indirect interests in accounts held through an entity are reportable. The report is required to be filed electronically via the Fincen Website. and is due by April 18, 2018, for 2017 filings. An extension is granted until October 15,2018 for FBARs not received by the April 18th due date.

Click me to know Types of Accounts that need to be reported on FBAR

What if I haven't Filed?

If you have a filing requirement for previous years and have not made those filings, you need to seek the advice of a CPA knowledgeable of FBAR and its requirements. The IRS does have programs in place to correct delinquent filings. However, making a “silent filing,” filing an FBAR for the current year when previous years were required and not filed, is not recommended

What do I do now?

Are you Willful or Non Willful

If you forgot to include all of your accounts, you will be in a much better situation to fight any penalties or other fines, as opposed to if you knowingly failed to report certain foreign accounts that you want to remain hidden and therefore acted willfully in committing a form of tax fraud/tax evasion.

No matter what, there is a way to fix it - the most common options are