• The IRS' definition of "U.S. person" includes citizens, resident aliens, and certain non-resident aliens.
• There are two tests used to determine if a person is a resident of the United States: 
  • The Substantial Presence Test
  • The Green Card Test

• U.S. Corporations, including those with foreign subsidiaries or operations.
• Partnerships and LLCs, both domestic and those with foreign interests.
• Trusts and Estates formed under U.S. laws or administered by U.S. persons.

• Bank Accounts, including savings, checking, and certificate of deposit accounts (CDs). 
• Securities Accounts, including brokerage accounts and derivatives.
• Other Financial Accounts, such as:
  • Mutual funds
  • Life insurance policies with cash value
  • Pension funds
  • Annuities

• Even if you only have signature authority on an account, you are still required to report it.
• For joint accounts, each U.S. person must report separately.
• Accounts with foreign branches of U.S. Banks are generally not reportable.

• Up to $10,000 per violation
• Can be applied per account, per year
• Example: 5 unreported accounts over 3 years could result in a $150,000 penalty

• Greater of $100,000 or 50% of account balance at time of violation
• Can be applied multiple times, potentially exceeding account value

The Supreme Court ruled that FBAR penalties apply per form, not per account, potentially reducing maximum penalties for non-willful violations.

• Fines up to $250,000
• Imprisonment for up to 5 years
• Prosecution under various statutes, including tax evasion and filing false returns

• Generally 6 years for FBAR violations
• No statute of limitations for civil tax fraud