What Small Business Owners Need to Know About Filing Their FinCEN Report.

As a small business owner, you likely manage various responsibilities, from daily operations to ensuring compliance with financial regulations. Filing your FinCEN (Financial Crimes Enforcement Network) Report is a crucial yet often overlooked responsibility. The FinCEN Report 114, commonly known as the FBAR (Foreign Bank Account Report), is a key compliance requirement for businesses and individuals with foreign financial accounts. Here’s what you need to know to stay on top of your obligations.

?What is the FinCEN Report?

The FinCEN Report 114 is a form required by the U.S. Treasury for businesses and individuals with financial interest or signature authority over foreign financial accounts that exceed $10,000 in aggregate value at any time during the calendar year. The report's purpose is to detect and combat financial crimes like tax evasion and money laundering.

Who Needs to File?

As a small business owner, you must file the FinCEN Report if:

1. You Own Foreign Financial Accounts: This includes bank accounts, brokerage accounts, mutual funds, and other foreign financial accounts held in your business's name or personally.
2. The Aggregate Balance Exceeds $10,000: If the combined value of all your foreign accounts exceeds $10,000 at any point during the calendar year, you must file.

Even if you have signature authority over foreign accounts you do not own, you may still need to file.

How to File Your FinCEN Report

1. Gather Your Account Information:
2. Complete the FinCEN Report 114 Online: You can file electronically through the BSA E-Filing System, which is free and straightforward to use.
3. Meet the Deadline: The FinCEN Report is due annually by April 15, with an automatic extension to October 15 if needed. Filing late without reasonable cause may result in significant penalties.
4. Work with a CPA or Tax Professional: FinCEN reporting can be complex, especially for small business owners with multiple accounts or entities. Partnering with a CPA experienced in international reporting can ensure accuracy and compliance.

Penalties for Non-Compliance

Failing to file the FinCEN Report or filing it inaccurately can result in hefty penalties:

• Non-Willful Violation: Up to $10,000 per violation
• Willful Violation: The greater of $100,000 or 50% of the account balance

Avoid these penalties by staying informed and proactive.

Stay Compliant and Confident

Filing your FinCEN Report is not just a regulatory obligation; it’s a step toward ensuring your business operates transparently and ethically. As a small business owner, understanding and fulfilling this requirement protects you from legal and financial risks while fostering trust with your clients and partners.

For expert assistance in navigating FinCEN compliance, contact Sidney French, CPA. With decades of experience and IRS expertise, I’m here to help you every step of the way.

?? Call: (913)396-1207