IRS issues fact sheet reminding taxpayers of FBAR filing requirements
On April 12, the Internal Revenue Service issued a new Fact Sheet (FS-2018-7
) regarding the obligations U.S. persons have to file Reports of Foreign Bank Accounts (FBARs). In general, a U.S. person must file an FBAR for a calendar year if the U.S. person has financial interest in or signature authority over one or more foreign financial accounts, and the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the year.
FBAR filers are required to submit an FBAR by April 15 of the year following the calendar year for which they are reporting, but filers are granted an automatic six-month extension of time to file (until Oct. 15). There is currently no requirement to request this extension with any taxing authority. There are several exceptions to filing for certain types of accounts and filers.
The Fact Sheet provides an overview of:
- Who needs to file an FBAR
- How reporting should be performed
- Accounts that are exempt from FBAR reporting
- How the maximum account value should be measured
- How the FBAR compares to IRS Form 8938, Statement of Foreign Financial Assets
- Due dates for filing an FBAR
- How to file an amended or late FBAR
- Potential penalties for noncompliance
- How long records should be retained by filers
Further guidance surrounding FBAR reporting requirements can be found in the IRS FBAR Reference Guide
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