FBAR Filing Instructions
United States residents, citizens, estates, trusts and domestic entities with ownership or control of foreign accounts including bank account, trust, mutual fund, brokerage account or any other type of foreign financial account with an aggregate value of over $10,000 at any time during the calendar year are required to file a report to the Department of Treasury by filing a Financial Crimes Enforcement Network (FinCEN) 114, Foreign Bank Account Report (FBAR).
FBAR Instructions 2017
Failure to file FBAR results to a penalty $10,000 in each instance of noncompliance. If the failure to file the foreign Bank Account Report is intentional, penalties can often exceed the original account balance.
Due date for Filling Foreign Bank Account Report (FBAR)
For 2016 and 2017, the filing deadline for FBAR was June 30th. You had to make timely filing as no extension was available.
FBAR Reporting Instructions
But starting form 2017, new FBAR filing deadline was moved to align with the federal income tax filing season. The new due date for filing reports of Foreign Bank and Financial Accounts (FBAR) is April 15. This date change was mandated by the Surface transportation and Veteran’s Health care Choice Improvement Act of 2015, Public Law 114-41 (the “Act”). Specifically, section 2006(b)(11).
This new deadline also allows a six month extension from the due date. Filers who fail to meet the FBAR annual due date of April 15 get an automatic extension to Oct 15. No specific requests are required for this extension.
Instructions for filing FBAR
Up to 2013, U.S tax payers had the options of filing FBAR in either electronic or traditional format but the traditional format is no longer available. Today, all taxpayers should handles all aspects of FBAR reporting through Financial Crimes Network’s Bank secrecy portal.
Taxpayers can access the FinCEN Form 114 from the portal. After accessing the form, a one should fill the form accurately and comprehensively. Some of the items requested include:
- Filing name
- Financial accounts information
- Consolidated FBAR information
- Signature authority accounts
Exceptions to the FBAR Reporting Requirement
The following United States persons or foreign financial accounts have FBAR filing exceptions.
- Some foreign financial accounts jointly owned by spouses
- United States citizens included in consolidated FBAR
- NOSTRO/ Correspondent accounts
- Foreign Financial accounts owned by governmental entities.
- Foreign Financial accounts owned by international financial institutions
- Beneficiaries and owners of United States IRAs.
- Beneficiaries and participants in Tax qualified retirement plans
- Some individuals with signature authority over foreign financial accounts but no financial interest.
- Foreign financial accounts maintained on U.S military banking facility.