What is the FBAR (FinCEN Report 114)?
The FBAR is an annual report that must be filed by any U.S. person who has a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust or other type of foreign financial account, exceeding certain thresholds.
A U.S. person includes U.S. citizens, U.S. residents, entities, including but not limited to, corporations, partnerships or limited liability companies, created or organized in the United States or under the laws of the United States, along with trusts or estates formed under the laws of the United States.
The report must be filed if the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the year. The FBAR is due on April 15th, but FinCEN will allow filers an automatic extension to October 15th. For willful violations, the penalty may be the greater of $124,588 or 50 percent of the balance in the account at the time of the violation, for each violation. Non-willful violations that are not due to reasonable cause can be subject to penalties up to $12,459 per violation.
All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.