Filing the FBAR is a requirement for all US persons with any income or assets in foreign bank accounts. Get the information you need to protect your interests.
FBAR requirements Purpose and Definitions of The Report of Foreign Bank and Financial Accounts

W-T-FBAR?

Requirements, Purpose and Definitions For Reporting Foreign Bank and Financial Accounts (FBAR)

 
The FBAR filing requirement is imposed upon taxpayers through the U.S. Treasury. Under Treasury regulations, any United States person who has a financial interest in a bank, security, or other financial account in a foreign country must make an FBAR filing annually, for any such account. 
 
Making a Timely Disclosure under Offshore Voluntary Disclosure Program

Making a Timely Disclosure under Offshore Voluntary Disclosure Program

Under the IRS Offshore Voluntary Disclosure Program, taxpayers have the opportunity of making a voluntary disclosure of all their offshore financial accounts and assets to the IRS. In exchange for making the voluntary disclosure, the IRS offers taxpayers a decreased risk of criminal prosecution for federal tax crimes and assorted fines and penalties.

Civil Penalties For Failure to Participate in OVDP

Civil Penalties For Failure to Participate in OVDP

If a taxpayer who is eligible to participate in the Offshore Voluntary Disclosure Program fails to do so, he or she may be open to certain civil penalties if the IRS discovers the taxpayer’s nondisclosure of foreign accounts and assets. Depending on the taxpayer’s facts and circumstances, the following penalties may apply.

Special FBAR Reporting Rules for Certain Types of Foreign Accounts

Special FBAR Reporting Rules for Certain Types of Foreign Accounts

Under FBAR regulations , special rules may apply to specific types of accounts. In particular, the FBAR reporting requirement may apply to U.S. persons who have “signatory interest” in a foreign financial account, even if that person would not technically have a “financial interest” in the account under the FBAR statute. Finally, the FBAR regulations provide exemptions for certain types of accounts.

Which Foreign Financial Accounts are Subject to the FBAR Requirement?

Which Foreign Financial Accounts are Subject to the FBAR Requirement?

Any “person subject to the jurisdiction of the United States” that has “a financial interest in, or signature or other authority over, a bank, securities or other financial account in a foreign country” must report this “relationship” annually as part of the FBAR requirement. The terms “bank, securities or other financial accounts” has specific definitions under the statute.

FBAR Definitions of Foreign Account and Financial Interest

FBAR Definitions of Foreign Account and Financial Interest

FBAR requires reporting with respect to financial accounts “in a foreign country,” where “foreign country” defined as “all geographic areas located outside of the United States” (1). Hence, an account is considered “foreign” for the purposes of FBAR filing if it has a geographical location outside of the United States. The nationality of the financial institution is not relevant to the “foreign account” determination, such that a foreign branch of a U.S.

FBAR Filing Requirements Purpose and Definitions

FBAR Filing Requirements: Purpose and Definitions

The FBAR filing requirement is imposed upon taxpayers through the U.S. Treasury. Under Treasury regulations, any United States person who has a financial interest in a bank, security, or other financial account in a foreign country must make an FBAR filing annually. The purpose of the FBAR filing is to inform the U.S. Treasury of the existence of the taxpayer’s relationship with the foreign account, bank or security (1).

How to Bring a Foreign Bank Account Into Compliance

Do you have a foreign bank account that may have international tax implications? If so, it is absolutely critical that you fully understand that US tax law states all US persons (that is citizens, resident aliens and anyone who meets the substantial presence test) file an FBAR to make the IRS aware of any foreign bank accounts that you have interest in or authority over.


Contact An FBAR Tax Attorney
Subscribe to RSS - FBAR News and Information On Programs and Procedures