Do You Have a Foreign Bank Reporting Requirement?

FinCEN Form 114, commonly known as The Foreign Bank Account Report (FBAR) must be filed by individuals who are U.S. citizens with financial interests in, signature, or other authority over a foreign bank, securities, or other financial accounts whose aggregate amount in the account exceeds $10,000 in U.S. currency at any time during the year. The FBAR must be filed electronically by June 30th of the following year and there are no extensions or paper filings allowed. In addition, some taxpayers will need to file Form 8938 – Statement of Specified Foreign Financial Assets with their annual income tax return.

The IRS can impose harsh financial penalties for noncompliance even if the taxpayer was unaware of the  filing requirement. Furthermore there are strict criminal penalties and jail time if the noncompliance is willful. There are a few exceptions from this filing requirement and the IRS offers a Voluntary Disclosure Program.

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Dessi Chausheva
Tax Senior
dchausheva@acmllp.com
970-352-1700

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