FBAR filing requirement is fulfilled by completing and submitting Financial Crimes Enforcement Network (FinCEN) Form 114, also known as the Report of Foreign Bank and Financial Accounts (FBAR) by April 15th, with an automatic extension until October 15th available upon request. This requirement applies to U.S. persons who have a financial interest in, or signature authority over, one or more foreign financial accounts, and the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.

Foreign financial accounts can include bank accounts, brokerage accounts, mutual funds, and certain types of investment accounts. The determination of whether an account is considered a foreign financial account for FBAR purposes is independent of whether the account generates taxable income. The penalties for failing to comply with FBAR filing requirements can be significant. Non-willful violations can range from $0 to $10,000 per violation. For willful violations, the penalties can be much higher, reaching up to the greater of $100,000 or 50% of the account balance per violation.

Our CPA CLINICS’ FBAR filing services team have a deep understanding of the FBAR regulations and assists individuals and organizations affordably navigate the complex requirements of FBAR.