This infographic will help answer an questions about the FBAR.
- What is the FBAR?
FBAR stands for Foreign Bank Account Report, and it is a mandatory form for some taxpayers with Foreign financial accounts.
- 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.
- When is the FBAR Due?
June 30th -with no extensions.
- 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
- What value do you report?
Report the highest value of the account during the calendar year.
- 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
- 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.
- 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.
- 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.
