If you have overseas banking accounts, it is important to understand and if you are required to declare these accounts, and if you are, what IRS forms you need to submit.
Learn what documents you need to file, and how to submit them to stay compliant with IRS guidelines.
Key Insights We Will Discuss:
- What is an FBAR form?
- Who should file an FBAR form?
- How to file an FBAR form?
If you have foreign bank accounts, you need to fill out and submit a Foreign Bank Account Report (FBAR) form each year. This declares your account information to the U.S. Treasury and prevents people from hiding offshore assets and income to avoid taxes. This is not a tax form – it is meant to be an informational document that needs to be filled out by individuals and companies who have foreign accounts that exceed a certain amount during the year.
Who Needs to File an FBAR Form?
Individuals, joint bank account holders, and companies can all be required to file an FBAR form if they meet the following criteria:
- Individual Foreign Bank Account Holders: U.S. citizens or green-card holders must file an FBAR form if an account outside the U.S. exceeds $10,000 at any point during the year
- Joint Foreign Bank Account Holders: Joint account holders must each file separate FBAR forms, with each of them reporting the full balance of the account. Spouses may file a joint form.
- Companies with Foreign Accounts: U.S. companies must file FBAR forms for any overseas accounts they possess.
How to File an FBAR Form
According to the IRS, FBAR forms should not be filed with your federal tax return. Instead, these must be submitted electronically through the Financial Crimes Enforcement Network’s BSA E-Filing System.
If you need to file a paper form, the federal agency states you must call the FinCEN Regulatory Helpline to request an exemption from e-filing. If they accept your request, FinCEN will send you a paper FBAR to complete and provide you with mailing instructions.
Contact an Attorney
If you have overseas accounts, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from a tax attorney.
- U.S. citizens and companies with overseas accounts totaling at least $10,000 at any point during the year must file an FBAR form
- These forms must be filed through the BSA E-Filing System
- Contact Ayar Law to get free, no-obligation legal advice at 800.571.7175