|Who must file?
Specified individuals, which include US citizens,
resident aliens, and certain non-resident aliens
who have an interest in specified foreign financial
assets and meet the reporting threshold.
US persons, which include US citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold.
|Does the United States include US territories?
Yes, resident aliens of US territories and US
territory entities are subject to FBAR reporting.
Reporting threshold (total value of assets)
For those living abroad, if the total is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or if filing a joint return and the value of your asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year (lower threshold amounts apply to individuals living in the US).
$10,000 at any time during the calendar year— this amount is aggregate (i.e., you have 2 accounts, one with $7000 and one with $4000 as its highest value, you will need to file).
When do you have an
interest in an account or
If any income, gains, losses, deductions, credits,
gross proceeds, or distributions from holding or
disposing of the account or asset are or need to be
reported, included, or otherwise reflected on your
income tax return.
Financial interest: you are the owner of
record or holder of legal title, the owner of
record or holder of legal title is your agent or
representative, you have a sufficient interest in the
entity that is the owner of record or holder of legal
title Signature authority: you have authority to
control the disposition of the assets in the account
by direct communication with the financial
institution maintaining the account.
See instructions for further details.
What is reported?
Maximum value of specified foreign financial assets, which include financial accounts with foreign financial institutions and certain other foreign non-account investment assets.
Maximum value of financial accounts maintained by a financial institution physically located in a foreign country.
How are maximum
account or asset values
determined and reported?
Fair market value in US dollars in accord with the
Form 8938 instructions for each account and asset
reported; convert to US dollars using the end of
the taxable year exchange rate and report in US
Use periodic account statements to
determine the maximum value in the
currency of the account; convert to US
dollars using the end of the calendar year
exchange rate and report in US dollars.
|When is it due?
||By income tax due date, including extension, if any.
||Received by June 30 (no extensions granted).
|Where to file?
File with income tax return pursuant to
instructions for filing the return.
ALL individuals file electronically through
BSA E-Filing System;
it is not filed with your Federal Tax Return.
Up to $10,000 for failure to disclose and an
additional $10,000 for each 30 days of non-filing
after IRS notice of a failure to disclose, for a
potential maximum penalty of $60,000; criminal
penalties may also apply. NOTE: If not filed by the
due date, the statute is open forever and there is
no limit as to when the IRS can perform an audit.
If non-willful, up to $10,000; if willful, up to the greater of $100,000 or 50 percent of account balances; criminal penalties may also apply.