Foreign Bank Account Reporting
If you are a US citizen or Green Card holder, and you have a bank account outside of the US, there is a very high chance that you must disclose it to the US government or face the prospect of civil or criminal penalties.
Who must file FBAR?
You are required to file a Foreign Bank Account Reporting (FBAR) if:
• You have a financial interest in, or signature authority (or other authority that is comparable to signature authority) over one or more accounts in a foreign country and
• The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.
Filing Deadline is on June 30th and no extension is allowed. Your report must be received by Detroit, MI office on or before June 30th. Keep in mind that Tax returns are postmarked on April 15th but FBAR report has to be received by June 30th which makes mailing deadline for FBAR a few days earlier than the June 30th.
The US government has shown its intention to clamp down on non-compliance, with penalties for non-filing starting at $10,000 per account per year, or even criminal prosecution – yes, that means jail time. The US government now exchanges information with foreign governments and foreign banks so it is very important that you file accurate FBARs.
Effective July 1, 2013, the FBAR must be filed electronically through FinCEN’s BSA E-Filing System. The FBAR is not filed with a federal tax return. A filing extension, granted by the IRS to file an income tax return, does not extend the time to file an FBAR. There is no provision to request an extension of time to file an FBAR.
We can help you file your FBARs in compliance with the stringent deadlines imposed, as well as assist those who have not filed the FBAR in prior years to bring their reporting up to date before the IRS comes asking questions.