U.S. citizens, residents, and entities who have either a financial interest in and/or signature authority over a foreign financial account may be required to file a report annually with the Department of Treasury. The Report of Foreign Bank and Financial Accounts (officially FinCEN Form 114, but more commonly referred to as “FBAR”) is separate from the filing of an income tax return; for the 2015 reporting year, the FBAR is due on June 30, 2016.
Applicable foreign accounts could include bank accounts, securities or brokerage accounts, cash value life insurance policies, or foreign retirement plans, among others. Filing is generally required if the aggregate value of your reportable accounts exceeded $10,000 at any point during the year.
Noncompliance penalties are substantial—up to $10,000 per violation for non-willful violations, or the greater of $100,000 or half of the account balance for willful violations!
Also as you look ahead to next year, the annual deadline has moved up to April 15 each year (instead of June 30), beginning with the 2016 FBAR due on April 15, 2017.
If you have any questions or need to file, please contact us at
For additional information about filing the Foreign Bank Account Report, please call the Barnes Dennig team at 513-241-8313 or click here to contact us. We look forward to assisting you!