FBAR Filing Overview
FBAR filing on the FinCEN Form 114, Report of Foreign Bank and Financial Accounts is required when a U.S. person has a financial interest in or signature authority over one or more foreign financial accounts with an aggregate value greater than $10,000. If a report is required, certain records must also be retained.
FBAR Filing Criteria
In order to determine whether or not there is an FBAR filing requirement, all of the following must apply:
- The filer is a U.S. person
- The U.S. person has a financial account(s)
- The financial account is in a foreign country
- The U.S. person has a financial interest in the account or a signature or other authority over the foreign financial account
- The aggregate amounts in the accounts valued in U.S. dollars exceed $10,000 at any time during the year
Who Is A US Person For FBAR Filing
A U.S. person for the FBAR filing criteria is a resident or citizen of the United States or a person (which can include a corporation, trust or partnership) in, and doing business in, the United States.
What Is A Foreign Financial Account For FBAR Filing
A foreign financial account is generally an account located in a foreign country, which includes all geographic areas located outside the United States. The location of an account, not the nationality of the financial institution with which the account is held, determines whether the account is in a foreign country.
The FBAR must be filed for each year that a person has a financial interest in or authority over the foreign financial account when the balance exceeds the $10,000 threshold. The FBAR must be filed on or before June 30 each calendar year and must be filed electronically on the FinCEN Form 114. Unfortunately, extensions of time to file federal tax returns do not extend the time for FBAR filing. There are no extensions of time to file an FBAR.
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