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Client Memo – Mandatory FBAR E-File

by | May 14, 2014 | Client Memo, Tax

The June 30 deadline for filing the annual report to the IRS of a foreign bank and financial account (“FBAR”) is fast approaching and there is no extension of time available for filing an FBAR. Note that FBAR filing is only required if you have more than $10,000 in a foreign account at any time during the year. A civil penalty of up to $10,000 per violation may be assessed if not properly filed when required. A person who willfully fails to report an account may be subject to a civil monetary penalty equal to the greater of $100,000 or 50% of the balance in the account at the time of the violation.

In addition, electronic filing is now mandatory for the 2013 filing year.  Electronic FBARs, Forms FinCEN 114 (formerly Form TD-F-90-22.1), are to be completed and filed through the BSA E-Filing System at http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html, not through the IRS.

To complete your FBAR online – Click on Prepare FBAR on the website provided above and follow the instructions to complete all tabs including signature information. You have the option to save it online or on the desktop and complete it later. Please note that when completed, the form must be signed and saved to activate the Ready to File button.

On the same website, you will see a Submit FBAR option which enables you to upload and file a previously saved PDF. Please note that under this option, only the electronic FBARs are accepted. It will not accept any scanned images.

  1. Enter your email, first name, last name, and phone number. A filing confirmation email will be sent to the email address provided once successfully submitted.
  2. Click on Choose File to browse your computer to attach the completed form you saved. Please note that you must sign the completed form before submission.
  3. Click on Submit.

If you would like our firm to prepare and file your FBAR on your behalf, please let us know before June 15 and provide the following information to us, and we will be more than happy to do so:

  1. List any accounts that you are a signer on even if the funds do not belong to you
  2. Bank name, account number, and the highest account balance in 2013 for each account
  3. Confirm if the account is separate property or community property

If you have any questions regarding the above information, please do not hesitate to contact us.

Disclaimer: The information contained in this publication is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. In no event will Fishman, Block + Diamond, or its partners, employees, or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

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