Foreign Bank Account Reporting (FBAR)

[vc_row fullwidth=”true” column_padding=”5″][vc_column width=”2/3″][mk_fullwidth_slideshow padding=”0″ images=”207″ stretch_images=”true” direction_nav=”false”][mk_padding_divider][vc_column_text]According to the Bank Secrecy Act (BSA), the Report of Foreign Bank & Financial Accounts ( “FBAR”) was created in an effort to prevent tax evasion, money laundering and other financial fraud. Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, with an aggregate value of  in excess of $10,000 at any time during the calendar year, is required to report such information to the US Treasury by no later than April 15 of the following year (2016 new law), with an automatic 6-month extension.

United States person includes a citizen, resident of the United States, a domestic partnership, a domestic corporation, a domestic estate or trust and certain visa holders. If a filer does not have all the necessary information to prepare the report completely by the due date, including extension, they are advised to file their FBAR (new FinCEN Form 114) as complete as possible and amend them when additional necessary information becomes available. FBAR

Look-back period
The US authorities have indicated that once they receive disclosure from a foreign financial institution with respect to its US account holders, they will review all accounts back to August 1, 2008, including the closed accounts. Therefore, closing an account in a foreign financial institution and transferring it to another one or to another country may not be a proper remedy for FATCA or FBAR.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_wp_custommenu nav_menu=”3″][/vc_column][/vc_row]