What are Foreign Bank Account Reporting (FBAR) requirements?
1. What is FBAR?
Foreign Bank Account Reporting.
2. Who Must File an FBAR
United States persons are required to file an FBAR if:
a. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
b. The aggregate value of all foreign financial accounts exceeded $10,000 (6,50,000 INR) at any time during the calendar year to be reported.
United States person means United States citizens; United States residents (includes visa holders H1B, H4, L1B, L2, EAD, green card); entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
3. How to Report and Filing Information
A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income. The FBAR is not filed with the filer’s federal income tax return. The granting, by the IRS, of an extension to file federal income tax returns does not extend the due date for filing an FBAR. You may not request an extension for filing the FBAR. The FBAR must be received by the IRS on or before April 15th, 2017 for year 2016 being reported.
4. What if I do not report FBAR?
Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties up to $10,000 per account per year, criminal penalties up to 50% of the account balance per year, or both.
Please contact us immediately if you think you have failed to file FBAR forms in the past. IRS offers few amnesty to fix all your past non-compliances and learn which option will work the best for you.
Contact US :- 847–524–0001.
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