Do I need to file an FBAR?

Do I need to file an FBAR?

This infographic will help answer an questions about the FBAR.

  1. What is the FBAR?

FBAR stands for Foreign Bank Account Report, and it is a mandatory form for some taxpayers with Foreign financial accounts.

  1. Who Must File an FBAR?

Any US Citizen who owns or controls one or more foreign bank and/or financial accounts with a combined value over $10,000 needs to file an FBAR every year.

  1. When is the FBAR Due?

June 30th -with no extensions.

  1. What type of accounts should be included on the FBAR?

Accounts that need to be reported include:

            All types of bank accounts

            Security, commodity futures or options accounts

            Insurance or annuity policies that have a cash surrender value

            Securities accounts

            Certain foreign retirement arrangements or Pension Accounts

  1. What value do you report?

Report the highest value of the account during the calendar year.

  1. What exchange rate should I use?

See the IRS website to determine the correct exchange rate:

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Treasury-Department-End-of-Year-Exchange-Rates

  1. How do I file?

Anyone can file at: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html. Or go to our website at www.universaltaxprofessionals.com and we can file for you. 

  1. What are the FBAR related penalties?

Penalties can range from a $500 penalty for a negligent violation to up to $100,000, or 50 percent of the amount in the account at the time of the violation for knowingly and Willfully filing a false FBAR.

  1. Do I need to pay taxes on the FBAR?

No.  The FBAR is only a reporting requirement.

 

If you have any other questions, or would like to speak with one of our professionals, visit our website at www.universaltaxprofessionals.com or email us at taxquestions@universaltaxprofessionals.com.

About the author...

Joshua Katz, CPA

After working for several accounting large firms, I founded Universal Tax Professionals because I knew I could give expats more personalized services at lower rates. Feel free to email me directly at josh@universaltaxprofessionals.com.

Joshua Katz, CPA