This Monday, June 30th is the due date for the Report of Foreign Bank and Financial Accounts, known as the FBAR. A U.S. person is required to file an FBAR if: (1) the U.S. person has a financial interest in or signature authority over at least one financial account located outside of the United States; and (2) the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported. “U.S. person” includes U.S. citizens; U.S. residents; entities, including but not limited to corporations, partnerships or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estate formed under the laws of the United States.
The FBAR reports the “maximum value of the account” to the IRS on an annual basis. There is no deadline extension allowed for the FBAR. And FBARs must now be e-filed. Penalties for failing to strictly comply with these requirements, which may equal the greater of $100,000 or 50 percent of the account balance for each year of violation, may be imposed.