The FBAR (Report of Foreign Bank and Financial Accounts) was introduced by United States of America in 2011 as a means of collecting information concerning an US citizen, US resident, corporations, partnerships, or limited liability companies created or organized in the United States.
The information refers to the cases where an interest in a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account is maintained by a US person outside the US. It is considered only an informational return, since it does not include any information on the Tax liability of the US person and even when the account produces no taxable income.
A person is considered to have interest in personal or corporate financial accounts outside USA and all over the world, when it has signatory authority on the account or because it can exercise control over them. Reporting should be filed, if at any time during a year the accounts exceed the amount of $10,000.
The FBAR is an annual report and must be filed on or before June 30, which will identify information of the previous year. The FBAR is not filed with a federal tax return and from 2013 can be filed electronically. There is no provision of requesting an extension to file for FBAR and civil penalties will incur for no willful filling that will not exceed $10,000 per violation. Criminal penalties may incur for willful violation and may be greater than $100,000 or 50 percent of the balance in the account.
Our firm through its extensive experience on reporting requirements of tax authorities worldwide, with more than 30 years of experience, can assist you and advice you in regards to your filing requirements. The requirements of US tax authorities are becoming increasingly stricter and Americans who reside overseas are still liable to meet their reporting obligations. It is of great importance that your reports are filed efficiently and on time to avoid any unpleasant knockings on the door from IRS.
For any inquiries and our professional assistance on the filing requirements please contact our team
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