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Who Must File

U.S. citizens, residents, and certain entities (like corporations and partnerships) must file an FBAR if they have:
A financial interest in or signature authority over one or more foreign financial accounts.
A total aggregate value of these accounts that exceeds $10,000 at any time during the calendar year.

Reporting Requirements

Accounts Covered: FBAR covers various types of foreign accounts, including bank accounts, investment accounts, and certain types of foreign trusts.
Filing Deadline: The FBAR must be filed electronically through the Financial Crimes Enforcement Network (FinCEN) by April 15 of the following year, with an automatic extension available until October 15.

Consequences of Non-Compliance

Penalties: Failing to file an FBAR can result in significant civil penalties, and in some cases, criminal charges. Penalties can vary based on whether the violation was willful or non-willful.
Impact on Tax Filings: While FBAR is separate from income tax returns, failure to report foreign accounts can lead to increased scrutiny from the IRS.

Important Considerations

Dual Reporting: The FBAR is distinct from IRS Form 8938 (Statement of Specified Foreign Financial Assets), which is part of the income tax return. Certain individuals may need to file both.
Signature Authority: Individuals with signature authority but no financial interest may also need to report these accounts.
Foreign Financial Institutions: Banks outside the U.S. may not report to the IRS, making FBAR essential for maintaining compliance.

FBAR serves as a critical tool for the U.S. government in monitoring foreign financial activities and ensuring compliance with tax laws. For U.S. taxpayers with foreign accounts, understanding and adhering to FBAR requirements is essential to avoid penalties and legal issues.