In order to be as prepared as possible, we recommend you gather the following information regarding each of your foreign accounts, before you begin the filing process (make a habit of keeping regular track of this information if you have accounts overseas!)
Name on the account,
Account number,
Name and address of the foreign bank,
Type of account, and
Maximum value during the year.
Note 1: you should retain this information for 5 years after the date of your FBAR filing.
Note 2: you don’t need to retain this information if you have no financial interest in the account (e.g. if the account in question is in your employer’s name)
Taiwan Tip: If you have a Taiwanese bank account, almost all of the required information can be found in your bank book. Keep these updated and accessible to save yourself some time during the FBAR filing process!
Although it can be difficult to determine if you need to file, the act of filing your FBAR is a relatively straightforward process.
The form you'll need to use is FinCEN Form 114. The form allows you to submit information for all your accounts at once.
You’ll need to file your FBAR annually, due each April 15 following the calendar year reported.
You’re allowed an automatic extension to October 15 if you fail to meet the April 15 due date.
You don’t need to request an extension to file the FBAR.
Once you have the necessary information, head to the FinCEN online form and carefully fill in your data. Double-check all information for accuracy and completeness before submission, in order to avoid complications later on.
It can sometimes be challenging to identify which of your accounts belongs in which category in FinCEN Form 114, or which of your accounts are exempted from filing. If in doubt, remember to consult with a tax professional well-versed in international tax matters. They can provide tailored guidance to ensure compliance and avoid significant penalties.
What happens if I don’t file my FBAR?
You may be subject to harsh penalties if you don’t submit your FBAR in a timely or accurate manner, especially if you do so intentionally. You may be liable for up to USD10,000 per violation for unknowing violations, and up to USD100,000 per violation (or up to half the value of your accounts, whichever is higher!) if you knowingly fail to file.
If you have never filed an FBAR, but you should have, or you believe you have filed incorrectly, don’t panic - the IRS offers a process known as Streamlined Filing Compliance Procedures to help people in your situation.
Again, we recommend consulting a tax professional if you have been delinquent in your FBAR filing. They can further streamline the remediation process, and potentially help you avoid unnecessary penalties.
How can I get help with my FBAR?
In addition to standard tax filing and preparation services, the experts at Del Sol CPA and associates are more than happy to offer you assistance with filing a timely and compliant FBAR each year. If you have any questions or need guidance, please don’t hesitate to reach out to our bilingual team of trained tax professionals for answers.
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