[fusion_builder_container background_color=”#ffffff” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”solid” padding_top=”20″ padding_bottom=”20″ padding_left=”” padding_right=”” hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none” last=”no” hover_type=”none” link=”” border_position=”all”][fusion_text]Report of Foreign Bank and Financial Accounts (FBAR) A lot of US citizens and residents have financial interest outside the country. Since your global income is liable to be taxed in the US, the US government requires certain financial information of its citizens and residents outside the country. With this intention, the form FBAR was introduced. As per this from, A United States person that has a financial interest or signature authority over foreign financial accounts must file the Form FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial interest or signature authority over a foreign financial account includes a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account. This form is filed independent of the tax return. It is required to be filed under the FinCEN (Financial Crimes Enforcement Network) which has been established to collect and analyze information to combat international money laundering and other financial crimes.
- Is this Form sent along with the tax return?
- No, this form is independent of the tax return and is required to be submitted online. Here is the address for submitting FBAR https://www.fincen.gov/forms/bsa_forms/fbar.html
- What is the due date for submitting FBAR?
- The due date for submitting this form for the year 2015 is June 30th 2016.
- What are the penalties for not filing this form?
- The failure to timely file the FBAR can be subject to civil penalties and possibly criminal sanctions (i.e., imprisonment).
- The statutory civil penalties might be $10,000 per year for a non-willful failure but a willful failure to file could, by statute, be subject to civil penalties equivalent to the greater of $100,000 or 50% of the balance in an unreported foreign account, per year, for up to six tax years.
- Non-willful penalties might be avoided if there is “reasonable cause” for the failure to timely file the FBAR.
[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]