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Foreign Bank Account Report

If you have 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 threshold.

Who Must File an FBAR

United States persons are required to file an FBAR if:

• The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
• The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year reported.

A person who holds a foreign financial account may have a reporting obligation even when the account produces no taxable income. The reporting obligation is met by answering questions on a tax return about foreign accounts (for example, the questions about foreign accounts on Form 1040 Schedule B) and by filing an FBAR.

Disclosure

• Bank, securities, financial instruments accounts.
• Accounts held in commingled funds (mutual funds) and the account holder holds an equity interest in the fund.
• Individually owned bonds, notes, stock certificates, and unsecured loans are not "accounts".
• Foreign life insurance or annuities with cash surrender value are "accounts".
• "Foreign" Online Gambling Accounts – IRS Says FBAR filing is Required.

Due Date for FBARs

The FBAR is a calendar year report and must be filed on or before April 15 of the year following the calendar year being reported. FBAR must be filed electronically through FinCEN’s BSA E-Filing System.

Due date for filing FBARs by certain individuals with signature authority over, but no financial interest in, foreign financial accounts of their employer or a closely related entity, to April 15, 2018.

The Act also mandates a maximum six-month extension of the filing deadline.

Non-Filing Penalty

• Failing to file an FBAR can carry a civil penalty of $ 10,000 for non-will ful violation.
• For will ful violations, the penalty may be the greater of $100,000 or 50 percent of the balance in the account at the time of the violation, for each violation.