FBAR (Foreign Bank Account Report)
Definition
A report (FinCEN Form 114) required of U.S. persons who have a financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. Filed electronically with the Financial Crimes Enforcement Network (FinCEN), not with the IRS. The deadline is April 15 with an automatic extension to October 15. Penalties for non-compliance are severe: up to $16,117 per violation for non-willful failures and the greater of $161,176 or 50% of account balance for willful violations.
Example
You have a savings account in the UK with $8,000 and an investment account in Switzerland with $5,000. Since the combined value exceeds $10,000, you must file an FBAR reporting both accounts.
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