A Report of Foreign Bank and Financial Accounts (FBAR) may be required if you are a US person with financial accounts located outside the United States. FBARs are submitted to the Financial Crimes Enforcement Network (FinCEN) using FinCEN Form 114.
An FBAR is an information report, not a tax return, and is filed separately from your US federal tax return.
Who Must File an FBAR
A US person must file an FBAR if they had a financial interest in or signature authority over at least one financial account located outside the United States, and the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year.
What Accounts Must Be Reported
Reportable foreign accounts typically include non-US bank accounts, non-US securities or investment accounts, non-US mutual funds, life insurance or annuity contracts, and non-US retirement accounts, including superannuation and other pension arrangements. Accounts you can control or sign for must also be reported, even if the funds are not your own.
When FBARs Are Due
FBARs are filed annually for the prior calendar year. The standard due date is 15 April following the year being reported. An automatic extension applies to 15 October, with no action needed to request it.
How to File an FBAR
FBARs must be filed electronically through the FinCEN BSA e-Filing System at https://bsaefiling.fincen.treas.gov/. They are not filed with the Internal Revenue Service as part of your tax return.
Reporting Currency and Exchange Rates
Foreign account balances must be converted into US dollars using the US Treasury exchange rate in effect on 31 December of the relevant reporting year. Average annual exchange rates are not used for FBAR purposes.
Penalties
Failure to meet FBAR filing requirements can result in significant financial penalties under US law. Civil monetary penalties can be substantial, and in severe cases criminal penalties may apply.
FBAR FAQs
Yes. FBAR obligations are based on your status as a US person, not where you live.
The $10,000 threshold is an aggregate test. This means you must add together the highest balance of each foreign account at any point during the calendar year.
Because each account is measured at its own peak balance, the combined total can appear higher than your actual net worth, particularly where funds move between accounts during the year.
The FBAR is a reporting of the maximum value that could be accessed in each account during the year. It is not a measure of your accumulated wealth and does not reflect the amount you held at any single point in time.
Yes. Ordinary checking, savings, and transaction accounts held outside the US are reportable if the threshold is met.
Yes. Whether a foreign retirement or pension account is reportable depends on control, access, and structure but all superannuation funds are generally reportable.
Signature authority means you can control or direct the disposition of funds in an account, even if the money does not belong to you.
Yes. Jointly held foreign accounts must generally be reported by each US person involved.
No. FBARs are filed separately through the FinCEN system.
The US Treasury exchange rate in effect on 31 December of the reporting year must be used.
Most taxpayers are required to file no more than six years of late FBARs.
Yes. Penalties can be significant, particularly where non-compliance is considered wilful.
Yes. AmTax can review your circumstances, determine your obligations, and prepare and file FBARs where required.
