Have You Reported Your Foreign Bank Accounts?
Posted by Chad BordeauxWednesday, June 25th, 2008
Anyone with foreign bank or financial accounts (or signature authority over such accounts) that exceed $10,000 at anytime during the calendar year is required to report these accounts to the Internal Revenue Service by June 30, 2008.
This requirement began in the year 2000. Failure to report these accounts carries stiff civil and criminal penalties. Civil penalties for non-willful violcation can range up to $10,000 per violation. Civil penalties for willful violation can range up to the greater of $100,000 or 50% of the amounts in the account. Criminal penalties for violating the requirements can range up to a $500,000 fine or 10 years imprisonment or both. You can be charged with both civil and criminal penalties for the same offense.
If you need to report such accounts, it can be done so by filing a Report of Foreign Bank and Financial Accounts (FBAR) Form TD F 90-22.1. To download the form, click here. If you need assistance in completing the form, please let our office know as soon as possible. These forms must be in by June 30th. The IRS does not grant extensions to file this form.
Last week, the IRS sent out a reminder to taxpayers that the deadline for filing this form was approaching. The full press release from the IRS: IR-2008-79
Chad is a Charlotte CPA who works with small business owners and invidiuals on a monthly basis to provide them with proactive guidance and advice on how to grow their business, minimize their tax liabilities and grow their bottom line. You can find our more about Chad by visiting his profile here: Chad BordeauxTags: foreign bank accounts
March 26th, 2009 at 3:56 pm
[...] You can learn more about the Report of Foreign Bank and Financial Account (FBAR) here. [...]