Foreign Bank and Financial Accounts (FBAR) should be reported to the IRS by filing an FBAR form. FBAR is a requirement for US taxpayers who have a financial interest in or signature authority over foreign financial accounts with an aggregate balance exceeding $10,000 at any time during the calendar year. The FBAR form should be filed electronically by April 15th of the year following the calendar year being reported.
The FBAR form requires disclosure of the taxpayer’s name, address, and social security number or individual taxpayer identification number (ITIN), along with information related to each foreign account, such as the name of the account, account number, and maximum value of the account during the year.
It is important to note that there may be additional reporting requirements under the Foreign Account Tax Compliance Act (FATCA) for foreign financial assets exceeding certain thresholds. Additionally, failure to file an FBAR or FATCA report can result in severe penalties, including civil penalties up to $12,921 per violation and, in some cases, criminal penalties.
If you have questions about FBAR filing requirements or need assistance with filing an FBAR form, it is recommended that you consult with a licensed attorney who specializes in tax law.
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