If you’re an expat in the US, you’ve probably heard about “FBAR”. No idea what this is? Sit back, grab a pen; we’ll give you a quick 'Introduction to FBAR'.

What is a Foreign Bank Account Report (FBAR)? 

In the United States, you need to report certain foreign financial accounts, brokerage accounts and mutual funds to the treasury department and keep records of those accounts. Luckily, this is all done in one form: the 'FinCen form 114'.‍

Are You Required to File an FBAR?

Wondering if you’re required to file? We love a good little questionnaire to find out:

1. Are you a United States citizen or resident, partnership, limited liability company, trust or estate?
2. Do you have financial interest or signature, or other authority over at least one financial account located outside the US?, and‍
3. The aggregate value of those foreign accounts exceeded US$10,000 at any point in time during 2019? 

‍Is your answer ‘yes’ to all the above, then you may have a FBAR filing requirement.

A financial account can be bank accounts, securities, mutual funds, insurance policies and any other accounts maintained in a foreign financial institution or with a person performing the services of a financial institution.  

When to File 

‍The annual deadline for filing the FBAR was April 15. This year, due to COVID, the lodgement due date was extended until October 15, 2020. We can still file your FBAR on time; however, time is ticking, so don’t wait too long!

Penalties

Failing to file means facing heavy penalties, so it’s always in your best interest to stay up to date.‍

Any person failing to file the FBAR can be subject to a penalty of up to USD $12,459 per violation. If you deliberately avoid filing then the penalty can be as high as USD $100,000 or more. 

Taxably Can Help!

If you are unsure whether your accounts fall into this criteria, contact our friendly team at Taxably to determine your filing requirement. 
Have you got a filing requirement or just a quick question? Fill out our contact form if you would like us to get in touch.