Foreign Bank and Financial Accounts

Stay compliant with U.S. tax laws by understanding the reporting requirements for foreign bank and financial accounts. This guide provides essential information on who must file a Report of Foreign Bank and Financial Accounts (FBAR), including threshold values and filing exceptions. It also covers the penalties for non-compliance and the additional reporting requirements under Form 8938 for specified foreign financial assets.

Highlights:

• Who Must File FBAR: Criteria for U.S. persons with financial interests or signature authority over foreign accounts exceeding $10,000.

• Filing Exceptions: Details on exemptions for certain accounts and individuals, including consolidated FBARs and military banking facilities.

• Penalties for Non-Compliance: Information on civil and criminal penalties for failing to file or filing incorrect FBARs.

• Form 8938: Additional reporting requirements for specified foreign financial assets, with different thresholds for individuals living inside and outside the U.S.