Remember To Disclose Non-Domestic Accounts (FBAR)
- Topics:
See from IRS.gov: Who Must File an FBAR?<
United States persons are required to file an FBAR if:
- The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
United States person means United States citizens; United States 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 estates formed under the laws of the United States.
Additionally after reviewing the extreme penalties, it is clear that you absolutely need to file this form if required.
Violation |
Civil Penalties |
Criminal Penalties |
---|---|---|
Non-Willful Violation | Up to $10,000 for each negligent violation | N/A |
Pattern of Negligent Activity |
In addition to penalty under § 5321(a)(6)(A) with respect to any such violation, not more than $50,000 |
N/A |
Willful - Failure to File FBAR or retain records of account | Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. | Up to $250,000 or 5 years or both |
Willful - Failure to File FBAR or retain records of account while violating certain other laws | Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. | Up to $500,000 or 10 years or both |
Knowingly and Willfully Filing False FBAR | Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. | $10,000 or 5 years or both |