Foreign Bank Account Report – FBAR
U.S. persons, including U.S. citizens, residents, corporations and estates, must report certain foreign financial accounts, including bank accounts, brokerage accounts and saving accounts to the U.S. Treasury department each year. If the aggregate value of your foreign financial accounts exceeded $10,000 at any time during the year, a ‘Foreign Bank Account Report’ (FBAR) must be filed.
You are required to report all foreign (i.e. non-U.S.) financial accounts: bank accounts such as savings accounts, checking accounts, and time deposits, securities and brokerage accounts, mutual funds, insurance policies with a cash value (such as life insurance policies), some pension accounts (for example Canadian and Swiss pension plans), and any other accounts maintained in a foreign financial institution.
FILING DUE DATE
The FBAR is due on April 15 following the year reported (for example, an FBAR for 2019 is due on April 15, 2020). However, you’re allowed an automatic extension to October 15 if you fail to meet the April 15 due date. You may be subject to penalties if you willfully or non-willfully fail to file your FBAR.
LATE & DELINQUENT FBARs
If you have properly reported the income from your foreign financial accounts on your tax return, you have paid all tax on that income, and you have not previously been contacted regarding an income tax examination or a request for delinquent tax returns, the IRS will not impose a penalty for your failure to file an FBAR. A statement explaining why the filing is late must be included with the filing. Failure to file an FBAR when required to do so may result in civil penalties, criminal penalties, or both.
If you failed to file an FBAR, or if you’re concerned the FBAR you filed is incomplete or incorrect, you should contact us. We can help. We’ll give you peace of mind and explain and review your FBAR filing requirements. If needed, we’ll prepare and electronically file an amended FBAR to make sure you’re fully compliant as soon as possible.
CONTACT US WITH YOUR FBAR QUESTIONS!
If the answer to your FBAR question is not in our FAQs, please use this form to send your question to us. We’ll contact you as soon as possible.