FBAR Filing

Report of Foreign Bank and Financial Accounts (FBAR) is required for all individuals who have foreign financial accounts, such as bank accounts, brokerage accounts and mutual funds and the highest aggregate value of these accounts exceed $10,000.

Who must file:

A United States person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report:

1. A financial interest in or signature or other authority over at least one financial account located outside the United States if
2. The aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
3. Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a “foreign financial account” for FBAR purposes.

You don’t need to report foreign financial accounts that are:

1. Correspondent/Nostro accounts,
2. Owned by a governmental entity,
3. Owned by an international financial institution,
4. Maintained on a United States military banking facility,
5. Held in an individual retirement account (IRA) you own or are beneficiary of,
6. Held in a retirement plan of which you’re a participant or beneficiary, or
7. Part of a trust of which you’re a beneficiary, if a U.S. person (trust, trustee of the trust or agent of the trust) files an FBAR reporting these accounts.

When to File:

The FBAR is an annual report, due April 15 following the calendar year reported.

You’re allowed an automatic extension to October 15 if you fail to meet the FBAR annual due date of April 15. You don’t need to request an extension to file the FBAR.

Keeping Records:

You must keep records for each account you must report on an FBAR that establish:

1. Name on the account,
2. Account number,
3. Name and address of the foreign bank,
4. Type of account, and
5. Maximum value during the year.

Penalties:

You may be subject to civil monetary penalties and/or criminal penalties for FBAR reporting and/or recordkeeping violations.  Assertion of penalties depends on facts and circumstances. Civil penalty maximums must be adjusted annually for inflation.  Current maximums are as follows:

Civil Monetary Penalty Description                                      Current Maximum

Foreign Financial Agency Transaction – Non-Willful          $12,921

Violation of Transaction

Foreign Financial Agency Transaction – Willful                  Greater of $129,210, or

Violation of Transaction                                                        50% of the amount per

31 U.S.C.5321(a)(5)(D)