Are you aware that you, as a US citizen, need to report all your foreign financial accounts (if their aggregate maximum value exceeds $10,000 at any time during the calendar year) to the IRS? Many people don’t, unfortunately. And even people who do know about this law sometimes forget to file a Foreign Bank Account Report (FBAR).
The good news is that there is no penalty for submitting a FBAR late. However, you can get a significant penalty if you don’t file it at all. Willingly failing to disclose foreign financial accounts can lead to a fine of up to 50% of the value of the accounts (or a minimum of $100,000). This is definitely not something you want to happen to you.
OK, but who must file a FBAR? According to the IRS, filing a FBAR is mandatory for any “citizen, resident, green card holder, corporation, partnership, limited liability company, trust, or estate” that has foreign financial accounts. However, you need to file it only if the value of all your accounts exceeds $10,000 at any time during the calendar year.
To avoid getting into trouble and getting penalizes, we recommend you to get in touch with Leading Tax Group tax attorneys. We have extensive experience with filing late FBARs and delinquent FBARs. Our experts in NYC can help you file it correctly and avoid a hefty fine.
Contact UsHeadquartered in Encino, California with multiple local branch offices in your backyard to serve you at your convenience. Leading Tax Group can schedule a face to face consultation to represent your case with the IRS, FTB, EDD, as well as CDTFA Audits.
The Bank Secrecy Act requires you to report certain foreign bank accounts to the Treasury Department. If you are a US citizen with a foreign account balance of $10,000 or more, you need to report it. The IRS and the Treasury Department have a very rigid process for declaring overseas assets
Even though they cannot “see” it, they can find out about it eventually. If you did not report the foreign bank accounts and you have a total balance of $10,000 or more, it would be best to consult Leading Tax Group before the IRS discovers the unreported asset.
Some foreign bank accounts can be reported using IRS Form 3520. Also, you can file a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114. If you need help with this, get in touch with our tax experts.
There is no limit imposed by the IRS. Only your bank can impose a limit on the amount of money you can have in your account. However, you must report the foreign bank accounts to the IRS if the total balance is over $10,000.
You should include all of the following accounts in a FBAR: checking, savings, securities, brokerage, and deposit. However, you are free to report any kind of account you hold with a financial institution overseas.
You are not required to disclose information about your foreign bank accounts if the total balance (across all accounts, not each individual account) is less than $10,000. If the total balance equals or exceeds $10,000, you are required to report the accounts.
The Aggregate value is the total value of all of your accounts. If you have 5 accounts and their total value is above $10,000, you need to declare all of them – even when all of them have a balance of less than $10,000.
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