The Foreign Bank Account Report (FBAR), FinCEN Form 114a, is an important document for taxpayers who own or have signature authority over a foreign financial account. The FBAR must be filed annually with the Financial Crimes Enforcement Network (FinCEN), and it provides critical information about the taxpayer’s overseas assets. Here’s what you need to know about this important form.
Who Must File an FBAR?
Generally, the FBAR must be filed by any individual or entity that has a financial interest in or signature authority over any foreign financial accounts with a combined value of $10,000 or more at any time during the calendar year. This includes bank accounts, brokerage accounts, mutual funds, trust accounts, etc.
When Does an FBAR Need to Be Filed?
The FBAR must be filed on or before April 15th of each year for the prior calendar year. A six-month extension can be requested; however, there are no exceptions to the deadline for filing an FBAR for taxpayers who fail to file on time. Failure to file the required information before the deadline can result in severe penalties.
What Information Is Required on an FBAR?
The FBAR requires taxpayers to provide detailed information about their foreign financial accounts, including: bank information, account numbers, account balances, maximum values during the reporting period, and ownership details. Taxpayers must also provide identifying information, including: name, address, Social Security Number (SSN), and date of birth (DOB). All of this information is then submitted online via FinCEN's secure website.
Conclusion
The FBAR is an important document that taxpayers should not overlook when filing their taxes each year. By ensuring that all required information is provided accurately and timely, taxpayers can avoid costly penalties from both FinCEN and the IRS while also fulfilling their legal obligations under U.S. law. For more detailed information about filing an FBAR or other tax documents related to foreign income and investments, we encourage you to schedule a consultation with Provident Legal Counsel.
Contact Provident Legal Counsel today to discuss your case and legal options. Schedule a Consultation or call (214) 432-6100.
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