What is FBAR and Who Must Comply?
Yearly, under the Bank Secrecy Act certain foreign financial accounts must be reported. these accounts can be a bank accounts, brokerage accounts and mutual funds. Reporting is done to the Treasury Department. Reports are done by filing a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114 with the IRS.
Who Must File These FBAR Forms?
Any person who is holding a relationship with the United States, whether you are a citizen or resident or represent a corporation, partnership, limited liability company, trust and estate, must file an FBAR to report when:
- A Person holds any financial interest in / or signature or other authority over at least one financial account located outside the United States if,
- the aggregate value of those foreign financial account(s) exceeded $10,000.00 at any time during the calendar year you are reporting.
The FBAR reporting must be done the calendar year following the year of your report. However, you can get an automatic extension to 15 October if you fail to meet the deadline, without applying for this extension.
It is advisable to visit the website of the IRS for further and more detailed information.
Never forget about your duties towards the Treasury., Al Capone, the notorious gangster might not have served time for his life of gangsterism, but spent 11 years in Alcatraz for failing to pay taxes!
Don't delay, FBAR today!