9 thoughts on “What Is The FinCEN Form 114 (Report of Foreign Bank and Financial Accounts)?

  1. Hi,

    I have bank accounts abroad back home, and I just came to learn about FBARs this year. Is it required for us to report our FBARs for all my previous years in the US (I have been in the US for about twelve years…)? If so, will I be issued a penalty for delinquent filing of my previous years if they are now retroactively filed correctly?

    Thanks for your help!
    Albert

    1. Hi Albert, the FBAR is required to be filed for all years that you are considered a U.S. person and have an aggregate value of more than $10,000 in foreign financial accounts. The penalties can be quite severe depending on the value of your foreign accounts and the specifics of your situation as it relates to the delinquency. My recommendation would be to certainly file the delinquent FBARs and to seek the advice or legal review from an attorney depending on the nature of the delinquency and value of the accounts held. My firm can assist you with the preparation of your delinquent FBARs and we work with an attorney that can provide you with a legal review of your filing options so that you can make a decision in your best interest in regards to your chosen method of filing the delinquent FBARs.

      Best regards,
      Randall

  2. When I download the FBAR form on BSA Efiling site the following issues arise:
    1) I could not download using Chrome Browser so had to install Internet Explorer.
    2) When adding my address, It appears as though only American Zip codes are allowed to be entered – ie the PDF form is locked with validation which discriminates and requires only American Post Codes. Evne though I selected Country = GB (United Kingdom).
    Anyone else living abroad noticing the same issue?
    Real Shame that American IRS does not seem to undertake due diligence in testing the e-filing process for those citizens abroad who are left to feel abandoned like I do.
    At American Embassy in London I was told you have to “find out the solution to Tax filing on your own” – real shame ;-<

    1. Hi Nick, indeed these compliance processes are for a lack of a better term “a pain in the butt”. Since compliance is a given, your options are to navigate oneself through the process of self-preparing and self-educating (which can be a struggle and frustrating and ultimately left with some uncertainty as to whether the filings/compliance is accurately filed) or hiring a professional that will be your expert guide through compliance with your returns.

      Best regards,
      Randall

  3. If I have a 5% interest (100k) in a foreign project valued at 2 million would I need to file an FBAR? I have been issued shares in a document from that foreign country?

    1. Your interest in a foreign entity by itself would not necessitate the filing of an FBAR. However, depending on the value of the interest during the year (and end of year) along with other specified foreign financial assets held during the year, you may meet the filing requirements for the Form 8938.

      Best regards,
      Randall

  4. For taxpayers filing their 6-yr delinquent FBARs, do they file them on paper or electronically? If latter, how do they submit the reasonable cause letter? Also, is there a FinCEN Form 114 in pdf format? Thanks.

    1. Hi Alice, FBARs (for all years) are required to be filed electronically using the new BSA FinCen Form 114. The form is available for input into a pdf form that is electronically filed.

      Best regards,
      Randall

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