Report of Foreign Bank and Financial Accounts (FBAR)

[Pages:6]Report of Foreign Bank and Financial Accounts (FBAR):

FinCEN Form 114, Report of Foreign Bank and Financial Accounts, is used to report a financial interest in or signature authority over a foreign financial account. A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A person who is required to file an FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000 per violation.

The accounts to be included are bank accounts (checking, savings, etc), time deposits, security or brokerage accounts, insurance policies with a cash value, or any account held with a financial institution. In order to prepare these forms properly and completely please provide the following information.

FBAR Checklist:

Name & address of Filer of the Financial Account Date of birth, & ID number (SSN) of Filer of the Financial Account Highest balance within the account during the tax year Type of Financial Account ? bank, brokerage, etc Name and address of Institution where account is held Bank or Financial Account # Indicate if the account is jointly or separately held Name & address of other account holder (for jointly held accounts) Copy of statement indicating balance

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



Please Look more on IRS Website

Comparison of Form 8938 and FBAR Requirements

The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer's obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. Individuals must check the requirements and relevant reporting thresholds of each form and determine if they should file Form 8938 or FinCEN Form 114, or both.

Form 8938, Statement of FinCEN Form 114, Report

Specified Foreign Financial of Foreign Bank and

Assets

Financial Accounts (FBAR)

Who Must File?

Specified individuals, which U.S. persons, which include

include U.S citizens, resident U.S. citizens, resident aliens,

aliens, and certain non-

trusts, estates, and domestic

resident aliens that have an entities that have an interest

interest in specified foreign in foreign financial accounts

financial assets and meet the and meet the reporting

reporting threshold

threshold

Does the United States No include U.S. territories?

Yes, resident aliens of U.S territories and U.S. territory entities are subject to FBAR reporting

Reporting Threshold (Total Taxpayers living in the US: Aggregate value of financial

Value of Assets)

Unmarried taxpayer accounts exceeds $10,000 at

(or married filing

any time during the calendar

separately): Total value of year. This is a cumulative

assets was more than balance, meaning if you have

$50,000 on the last day of a combined account balance

the tax year, or more than of $12,000 at any one time

$75,000 at any time

(but divided between 2

during the year.

accounts), both accounts

Married taxpayer would have to be reported.

filing jointly: Total value

of assets was more than

$100,000 on the last day

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



Form 8938, Statement of FinCEN Form 114, Report

Specified Foreign Financial of Foreign Bank and

Assets

Financial Accounts (FBAR)

of the tax year, or more than $150,000 at any time during the year.

Taxpayers living outside the

US:

Unmarried taxpayer

(or married filing

separately): Total value of

assets was more than

$200,000 on the last day

of the tax year, or more

than $300,000 at any time

during the year.

Married taxpayer

filing jointly: Total value

of assets was more than

$400,000 on the last day

of the tax year, or more

than $600,000 at any time

during the year.

When do you have an interest in an account or

asset?

If any income, gains, losses, Financial interest: you are the

deductions, credits, gross owner of record or holder of

proceeds, or distributions legal title; the owner of

from holding or disposing of record or holder of legal title

the account or asset are or is your agent or

would be required

representative; you have a

to be reported, included, or sufficient interest in the

otherwise reflected on your entity that is the owner of

income tax return

record or holder of legal title.

Signature authority: you have

authority to control the

disposition of the assets in

the account by direct

communication with the

financial institution

maintaining the account.

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



Form 8938, Statement of FinCEN Form 114, Report

Specified Foreign Financial of Foreign Bank and

Assets

Financial Accounts (FBAR)

See instructions for further details.

What is Reported?

Maximum value of specified Maximum value of financial

foreign financial assets,

accounts maintained by a

which include financial

financial institution

accounts with foreign

physically located in a

financial institutions and foreign country

certain other foreign non-

account investment assets

How are maximum account Fair market value in U.S. Use periodic account

or asset values determined dollars in accord with the statements to determine the

and reported?

Form 8938 instructions for maximum value in the

each account and asset

currency of the account.

reported

Convert to U.S. dollars using

Convert to U.S. dollars using the end of the calendar year

the end of the taxable year exchange rate and report in

exchange rate and report in U.S. dollars.

U.S. dollars.

When Due?

Form is attached to your Received by June 30 (no annual return and due on the extensions of time granted) date of that return, including any applicable extensions

Where to File?

File with income tax return File electronically through pursuant to instructions for FinCENs BSA E-Filing filing the return. Form 8938 System. The FBAR is not and Instructions can be found filed with a federal tax at form8938 return.

Penalties

Up to $10,000 for failure to If non-willful, up to $10,000; disclose and an additional if willful, up to the greater of $10,000 for each 30 days of $100,000 or 50 percent of non-filing after IRS notice of account balances; criminal a failure to disclose, for a penalties may also apply potential maximum penalty of $60,000; criminal penalties may also apply

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



Types of Foreign Assets and Whether They are Reportable

Financial (deposit and Yes

Yes

custodial) accounts held at

foreign financial

institutions

Financial account held at a No

Yes

foreign branch of a U.S.

financial institution

Financial account held at a No

No

U.S. branch of a foreign

financial institution

Foreign financial account No, unless you otherwise Yes, subject to exceptions for which you have have an interest in the signature authority account as described above

Foreign stock or securities The account itself is subject The account itself is subject to

held in a financial account to reporting, but the contents reporting, but the contents of

at a foreign financial of the account do not have to the account do not have to be

institution

be separately reported

separately reported

Foreign stock or securities Yes

No

not held in a financial

account

Foreign partnership Yes

No

interests

Indirect interests in foreign No financial assets through an

entity

Yes, if sufficient ownership or beneficial interest (i.e., a greater than 50 percent interest) in the entity. See instructions for further detail.

Foreign mutual funds Yes

Yes

Domestic mutual fund No

No

investing in foreign stocks

and securities

Foreign accounts and Yes, as to both foreign foreign non-account accounts and foreign noninvestment assets held by account investment assets foreign or domestic grantor trust for which you are the

grantor

Yes, as to foreign accounts

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



Foreign-issued life Yes

Yes

insurance or annuity

contract with a cash-value

Foreign hedge funds and Yes

No

foreign private equity

funds

Foreign real estate held No

No

directly

Foreign real estate held No, but the foreign entity No through a foreign entity itself is a specified foreign

financial asset and its

maximum value includes the

value of the real estate

Foreign currency held No

No

directly

Precious Metals held No

No

directly

Personal property, held No

No

directly, such as art,

antiques, jewelry, cars and

other collectibles

`Social Security'- type No

No

program benefits provided

by a foreign government

*Note - This table is current through the publication date. Please check the instructions for each form for information regarding any future developments.

Page Last Reviewed or Updated by IRS: 04-May-2016

4494 Arniel Place Fairfax, VA 22030 T: 703.385.0855 F: 866.836.9882



 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download