Foreign Bank Account Report (FBAR) - FinCEN Form 114
A United States person must file a Foreign Bank Account Report (FBAR) if that person has a financial interest in or a signature authority over any financial account(s) outside the United States and the aggregate maximum value of the account(s) exceeds US$10,000 at any time during the calendar year. There is a noncompliance penalty starting at$10,000 per form for non-filing, late filing or incomplete filing.
A United States person includes a citizen of the United States, a Green Card Holder, and a resident of the United States under the substantial presence test. An otherwise non-U.S. person who makes an election to file a U.S. tax return jointly with their U.S. citizen spouse is also considered a U.S. person for purposes of filing the FBAR, Form 8938 (Statement of Foreign Financial Assets) and other information forms.
Starting with the 2016 FBAR, the form must be received by FinCEN by April 15 of the year following a tax year. Also for the first time, an extension is allowed when an extension is filed for a tax return, until the extended due date of the tax return. The FBAR may only be Electronically filed. There are severe penalties for failure to file an FBAR timely and/or correctly. Below are some useful links including the E-file web page, guides for completing the FBAR and exchange rates:
Download the latest FBAR fillable form and submit it here.
For further information about the FBAR, click here.
For a comparison of the FBAR and Form 8938 filing requirements, click here.
For Euro/dollar exchange rates from 2008 to 2018, click here.
For the IRS Comprehensive FBAR Reference Guide, click here.
*Form 8938: certain Clients need to file Form 8938 with their Federal tax return. To prepare this form, I will use your FBAR data as the primary data source. Provide me with a copy of your filed FBAR for those years for which you request your Federal tax return preparation.
*Other Exchange Rates: the FBAR instructions require FBAR filers to use the Treasury Reporting Rates of Exchange on the last day of the calendar year.