Who must file FBAR?
● You are required to file the FBAR for a calendar year if (i) you are a U.S. person and (ii) during such calendar year you had a financial interest in or signature authority over one or more foreign financial accounts with an aggregate maximum account value in excess of $10,000.
When to File FBAR?
● Your FBAR with respect to each calendar year must be filed on or before June 30 of the following calendar year. You cannot file for an extension to file your FBAR. What to do if you were required to file an FBAR for past year but did not do so?
● A voluntary disclosure program called Offshore Voluntary Disclosure Program is designed by IRS for the taxpayers to disclose their unreported financial accounts or other foreign assets to avoid the penalty.
● Fail to report the foreign accounts can result in paying huge penalties.
How to file FBAR?
● Remember, FBAR is not filed with a federal tax return. The FBAR must be filed electronically through FinCEN’s BSA E-Filing System. Here is the link http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
What foreign assets to report to IRS?
● The foreign financial assets that are held for investment i.e stock or securities, Any interest in a foreign financial institutions are to be reported to IRS.
How to report foreign assets on tax return?
● The form 8938 is used to disclose foreign financial assets. You are required to file the form 8939 along with the tax return.
For more information contact : United Tax at 888-771-1220 or visit their website at www.united.tax Email them at firstname.lastname@example.org