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International Tax

What is FBAR?

Foreign Bank Account Report - a form US persons must file to report foreign financial accounts exceeding $10,000.

Definition

The Foreign Bank Account Report (FBAR), officially known as FinCEN Form 114, is a report that US persons must file annually with the Financial Crimes Enforcement Network (FinCEN) if they have a financial interest in or signature authority over foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.

Who Needs to Know This?

US citizens, residents, and entities with foreign bank accounts, investment accounts, or signature authority over foreign accounts totaling more than $10,000 at any point during the year.

Key Deadline

April 15 with automatic extension to October 15

Potential Penalties

Up to $16,536 per violation for non-willful violations; up to $165,353 or 50% of account balance for willful violations

Related Forms

FinCEN Form 114

Common Mistakes to Avoid

  • 1Thinking the $10,000 threshold applies per account (it's aggregate total)
  • 2Not reporting accounts with signature authority only
  • 3Missing the deadline and not knowing about automatic extension
  • 4Confusing FBAR with FATCA Form 8938

Related Terms

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    What is FBAR? Foreign Bank Account Report Explained | Zenith Financial | Zenith Financial Advisors