Filing the Annual FBAR
FBAR Reporting Requirements: The FBAR is used by U.S. Persons if the value of their foreign bank and foreign financial accounts exceeds the threshold requirement on any day of the year. The threshold requirement for filing the FBAR kicks in if there is an annual aggregate total of all the accounts combined that exceeds $10,000 on any day of the year. When this is the case, the US person is required to report all of the accounts on the FBAR. This includes accounts that have a zero balance, and accounts that may be dormant. The failure to properly report the FBAR may result in significant offshore fines and penalties. These penalties maybe avoided, minimized or eliminated by using one of the voluntary disclosure (aka FBAR Amnesty programs).
We will summarize the FBAR Reporting Requirements below:
Who must Report the FBAR?
The FBAR is reported by any U.S. person who meets that threshold requirements for filing.
It is important to note, that US person is not limited to individuals.
Rather it may also include entities, trusts and estates.
Deadline for FBAR Reporting
In recent years, the FBAR filing due date has changed.
The due date is technically April 15 or when the tax return is due.
But, filing of the FBAR is on automatic extension.
That means that the tax return is not due until October, and the taxpayer does not need to file any form to secure an extension of FBAR Filing.
Missed the FBAR Reporting Due Date?
When a person misses the FBAR deadline for reporting, then the FBAR is considered delinquent.
A taxpayer cannot just go back and file a late FBAR. Rather, they are required to submit to one of the Voluntary Disclosure/Tax Amnesty Programs.
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