|January 3, 2014|
Previously published on December 30, 2013
U.S. taxpayers with a financial interest in or signature authority over foreign financial accounts are required to report them if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
This foreign bank account reporting is separate from the filing of the federal tax return, Form 1040, and also should not beconfused with the new Form 8938, Statement of Specified Foreign Financial Assets, which is required to be filed with Form 1040.
The required foreign bank account reporting, or "FBAR" for short, was previously accomplished by completing the informational return, Form TD F90-22.1, Report of Foreign Bank and Financial Accounts, and mailing that form to the Department of the Treasury in Detroit by June 30, following the calendar year in respect of which it was required. As of July 1, 2013, however, changes went into effect, and going forward all filing (including late filings and amended filings) must be done electronically. The Financial Crimes Enforcement Network (aka FinCE N), a division of the Department of the Treasury, has established the BSA E-Filing System for the electronic filing.
FinCEN has also updated and revised Form TD F90-22.1, changing its designation to Form 114. It also developed Form 114a, Record of Authorization to Electronically File FBARs, which is to be used to obtain permission from clients to file an FBAR on their behalf.