The FBAR stands for foreign bank account report. The form that the foreign bank accounts are reported on is called the FinCEN 114 (formerly TDF 90-22.1). Note that this is only an informational filing and there will not be any tax due with the filing.
- Who must file?
Any U.S. citizen no matter where they are located must file if their total foreign account balances are over $10,000 USD at any time during the year. A U.S. resident also is required to file this form. A U.S. resident is defined as someone who was physically present in the U.S. during the year for 183 days or more.
- How to file?
Your foreign bank account report must be electronically filed with the FinCEN department.
- When to file?
The foreign bank account report needs to be filed each year that you meet the requirements of filing. The due date is June 30th of the following year you have a filing requirement. The form cannot be extended and the FinCEN department must be in receipt of the filing by the 30th.
- What if I don’t file?
If you do not file each year by June 30th, the FinCEN department could impose a $10,000 penalty per year that you are delinquent.
- What if I should have filed? Do I have to pay the penalty?
If you should have filed but did not there are amnesty programs available to let you file late without penalty.
Please reach out to us today for a free consultation to see if you qualify for one of these filing programs.