FinCEN FORM 114 (FBAR)
Every year (under the law Bank Secrecy Act), you must report certain foreign financial accounts, such as bank accounts (includes checking or savings accounts, mutual funds, brokerage accounts, unit trusts, and other types of foreign financial assets). You report these accounts by filing Foreign Bank Accounts Report (FBAR) or FinCEN 114.
Who must file FinCEN114 (FBAR)?
A US Person that has financial interest in or a signature authority over foreign financial accounts must file FBAR if the total amount in your foreign financial accounts or aggregate (combined) value of one or more accounts is at least $10K or exceeds this amount and reaches this threshold at any time during the calendar year.
US Person means:
US Person means:
- A citizen or resident of the United States
- A domestic corporation,
- A domestic partnership, and
- A domestic estate or trust
Filing Information
FinCEN FORM 114 (FBAR) can only be electronically filed. It is not filed with your US Tax Return. You may not request an extension for filing for FinCEN 114. The FinCEN 114 (FBAR) is due April 15th, but is extended to October 15th automatically.
If you are affected by natural disaster, the government may further extend your FBAR due date. (See FBAR Relief Notice).
If you are affected by natural disaster, the government may further extend your FBAR due date. (See FBAR Relief Notice).
Record Keeping
You must keep records of each account you must report on FBAR that establish:
There is no specific law to what documents needs to be kept, it can be bank statements or a copy of your FBAR, if they have all the information stated above.
The records must be kept for 5 years from the due date of FBAR.
- Name on the account,
- Account number,
- Name and address of the foreign bank,
- Type of account, and
- Maximum value during the calendar year
There is no specific law to what documents needs to be kept, it can be bank statements or a copy of your FBAR, if they have all the information stated above.
The records must be kept for 5 years from the due date of FBAR.
Penalties
A person who is required to file FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000 per violation. If there is a reasonable cause for the failure of filing FBAR and the balance in the account is properly reported, no penalty will be imposed.
A person who willfully fails to report an account maybe subject to civil monetary penalty equal to the greater of, i) $100,000 or ii) 50% of the balance in the account at the time of violation.
See 31 U.S.C. section 5321(a)(5). Willful violations may also be subject to criminal penalties under 31 U.S.C. section 5322(a), 31 U.S.C. section 5322(b), or 18 U.S.C. section 1001
A person who willfully fails to report an account maybe subject to civil monetary penalty equal to the greater of, i) $100,000 or ii) 50% of the balance in the account at the time of violation.
See 31 U.S.C. section 5321(a)(5). Willful violations may also be subject to criminal penalties under 31 U.S.C. section 5322(a), 31 U.S.C. section 5322(b), or 18 U.S.C. section 1001
Specified Individuals living in the US:
Specified Individuals living outside the US:
Specified domestic entities:
- Unmarried individuals (or married filing separately)
- Married individuals filing jointly
Specified Individuals living outside the US:
- Unmarried individuals (or married filing separately)
- Married individuals filing jointly
Specified domestic entities:
- Total value of assets was more than $50,000 on the last day of tax year, or more than $50,000 at any time during the year.
