Your Guide to Filing the FBAR while living in Taiwan (or anywhere overseas).
In today’s globalized remote-work economy, more and more Americans are living and working overseas, and discovering first-hand the complexities that come with fulfilling your tax and financial reporting obligations while abroad. It’s not uncommon to experience friction, confusion, and endless questions while filing your taxes overseas. You may find yourself asking questions like:
“What forms do I need to fill out?”
“When do I need to submit them?”
“What exceptions or exemptions apply to me and my situation?”
What many don’t realize is that in addition to your tax obligations, there are other financial reporting requirements that US Persons must comply with. One of those is the FBAR (Report of Foreign Bank and Financial Accounts). Also referred to as FinCEN Form 114, the FBAR was introduced by the Bank Secrecy Act to combat money laundering, tax evasion, and other criminal activities.
In short, the FBAR is an annual report that US persons must submit if they have non-US financial accounts (for example, bank accounts in Taipei, Shanghai, Hong Kong, or Singapore) whose combined value exceeds USD 10,000 in a given year. The penalties for non-compliance in FBAR reporting can be severe, so it’s important to understand your responsibilities. Here’s what you need to know about the FBAR:
Key Takeaways
If the combined value of all overseas financial accounts in your name ever exceeds USD 10,000 at any point during the calendar year, you MUST file an FBAR report for all of your foreign/overseas accounts.
The filing deadline: April 15 (US Tax Day) but with an automatic extension until October 15
Penalty for NOT filing: (per violation) USD10,000 up to USD100,000 or half the value of your account - whichever is higher
Where to file: Complete the form on this page for EACH of your foreign accounts
Please note that while this article is tailored for readers based in Taiwan, the vast majority of the information presented here is applicable to US Persons living anywhere in the world.
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.
Copyright © 2023 by Del Sol CPA Services
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