FBAR 114a Report of Foreign Bank and Financial Accounts
FBAR 114a, Report of Foreign Bank and Financial Accounts, is probably the form that most taxpayers have heard of. When you own or have signatory authority over foreign financial accounts, if the aggregate balance of all the foreign accounts exceeds US$10,000 at any time during the year, you will be required to file the form.
So what accounts are covered? Pretty much all the financial accounts you have in foreign countries: - Checking and savings accounts, both individual and entity accounts - Brokerage - Virtual currency (for example, Bitcoins) - Trust - Retirement and pension accounts (for example, Mandatory Provident Fund (MPF)) - Life insurance policy with surrender value
Penalty: - For willful failure to file, the greater of $100,000 or 50% of your undisclosed foreign accounts' value for a willful failure to file. The IRS has indicated it may impose the penalty cumulatively for up to six years. - For non-willful (negligent) failure to file, $10,000 per account, per violation. This penalty can and often will be imposed cumulatively.
Not sure if you need to file or if your current CPA or accountant is preparing your tax return correctly? Not sure if you are filing all the required forms? Contact us now for a free consultation.