- 1 FBAR Filing Requirements
- 2 FBAR FAQ (Questions & Answers)
- 3 What is an FBAR (FinCEN Form 114)?
- 4 FBAR Threshold Filing
- 5 Which Accounts are FBAR Reportable?
- 6 Who Files FBAR?
- 7 FBAR Due Date
- 8 How to FBAR File
- 9 The FBAR Instructions are Confusing
- 10 Missed the FBAR Deadline
- 11 FBAR Penalties
- 12 How does IRS Know I Didn’t File FBAR?
- 13 File FBAR going Forward?
- 14 FBAR Amnesty
- 15 We Specialize in FBAR & FATCA Offshore Voluntary Compliance
FBAR Filing Requirements
FBAR Filing Requirements: Oftentimes, when someone first learns about the FBAR Filing Requirements they are (overly) worried or concerned — usually from the result of online fear-mongering. The FBAR (Foreign Bank and Financial Account Form) aka FinCEN Form 114 is an international information reporting form. Whether you are a Green Card Holder, U.S. Citizen or Foreign National who met the Substantial Presence Test, you may be required to file the FBAR.
Just being out of compliance does not mean you are automatically penalized.
Rather, the IRS has developed several amnesty programs to assist you with safely getting into compliance.
FBAR FAQ (Questions & Answers)
Questions about the FBAR can go on indefinitely — there is just that much to know.
Here are some of the more common questions we receive:
What is an FBAR (FinCEN Form 114)?
The FBAR is the FinCEN (Financial Crimes Enforcement Network) form that is used by U.S. Persons to report foreign bank and financial accounts.
While the FBAR is technically a FinCEN Form, it is enforced by the IRS.
And, depending on when you are reading this, you may still have time to timely file your FBAR in the current year.
FBAR Threshold Filing
If a Person has an annual aggregate total across all accounts (not per account total) that exceeds more than $10,000 on any given day of the year, the FBAR reporting rules kick-in and the form must be filed.
The +$10,000 is not a per account requirement, but rather +$10,000 in total for all accounts combined.
Which Accounts are FBAR Reportable?
Many different types of accounts are reported on the FBAR.
It is important to note it is not limited to just bank accounts.
It may also include:
- Investment Accounts
- Pension Accounts
- Stock Accounts
- Life Insurance
Who Files FBAR?
U.S. Persons who meets the +$10,000 threshold must file the FBAR.
One very confusing aspect of the FBAR, is that you have to file the form even if you are not required to file a tax return in the current year.
It is an entirely separate reporting requirement.
Do Individuals File FBAR?
Yes, Individuals file an annual FBAR.
Do Entities File FBAR?
Yep, entities file the FBAR too.
What About Minors, do they File FBAR?
Yes. There is no minor’s exception to filing the FBAR.
How about Trust and Estates, Do they File FBAR Too?
Yes, there is no exception for Trusts and Estates either.
FBAR Due Date
The FBAR is due in April, but is on automatic extension through October. (this may change in the future).
A brief history about the FBAR Form:
The FBAR deadline used to be June 30th.
Then, the FBAR due date was changed to April.
Therefore, as long as you are reading this before October 15th, you can still file a timely FBAR. Before filing for the current year, it is important to determine if you are were compliant in prior years as well
How to FBAR File
Individuals can go to the FinCEN.org website, download the PDF, save it to their computer, and submit directly from the form itself.
The FBAR Instructions are Confusing
We have prepared our own set of FBAR Instructions as 10-step guide to try to help you understand the requirements for filing.
Missed the FBAR Deadline
You should contact a Board-Certified Tax Law Specialist to assist you.
Beware of attorneys trying to scare you.
Always be careful of self-purported “FBAR Experts.”
The FBAR Penalties range extensively.
Some people get away with a warning letter in lieu of penalties.
Others can get hit with willfulness penalties, BUT most people are non-willful, and those penalties are more limited.
It is extremely rare for an FBAR violation to turn criminal.
How does IRS Know I Didn’t File FBAR?
The IRS has many different ways to find you.
Sometimes, you get discovered because someone else disclosed an account in which you jointly own it with them, or they already submitted to the FBAR Amnesty program.
More commonly, with the introduction of FATCA (Foreign Account Tax Compliance Act) more than 110 countries and 300,000 Foreign Financial Institutions are actively reporting U.S. persons with foreign account relationships.
File FBAR going Forward?
- Willful FBAR Penalties
- Tax Fraud
- Special Agent Investigation
But most likely, you will be fine – so beware of online fear mongers.
FBAR Amnesty is an approved method for safely getting into compliance.
Many taxpayers can reduce or even avoid penalties altogether.
Please beware of any tax professional that recommends a quiet disclosure — those are illegal and may result in an IRS Special Agent Investigation (read: not good)
We Specialize in FBAR & FATCA Offshore Voluntary Compliance
Our firm specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20-years experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Our lead attorney is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
Interested in Learning More about our Firm?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
We specialize in FBAR and FATCA. Contact our firm today for assistance with getting compliant.