What is FBAR? The Foreign Bank and Financial Accounts Report (FBAR) is a crucial financial reporting requirement imposed by the United States Department of the Treasury. It is used to collect information about foreign financial accounts held by U.S. persons to combat tax evasion and financial crime.
Comparison of FBAR Filing Deadlines (2024 vs. 2023)
| Year | FBAR Filing Deadline |
|---|---|
| 2024 | April 15, 2024 (with an automatic extension until October 15, 2024) |
| 2023 | April 15, 2023 (with an automatic extension until October 15, 2023) |
It’s essential to note that the FBAR filing deadline coincides with the individual income tax filing deadline, which is typically on April 15th. However, an automatic extension until October 15th is available.
FBAR Filing Requirements
Who Needs to File an FBAR? U.S. persons, including citizens, residents, and some entities, must file an FBAR if they have a financial interest in or signature authority over foreign financial accounts with a combined value exceeding $10,000 at any time during the calendar year.
Penalties for Non-Compliance Failure to meet the FBAR filing requirements can result in severe penalties, including civil and criminal penalties. Civil penalties can range from monetary fines to the forfeiture of assets, while criminal penalties may include imprisonment.
FBAR vs. FATCA
FBAR and FATCA (Foreign Account Tax Compliance Act) are two different reporting requirements, but they both focus on foreign financial accounts. Here’s a comparison:
| Aspect | FBAR | FATCA |
|---|---|---|
| Reporting Form | FinCEN Form 114 (formerly known as TD F 90-22.1) | Form 8938 |
| Reporting to | FinCEN (Financial Crimes Enforcement Network) | IRS (Internal Revenue Service) |
| Deadline | April 15th with an extension until October 15th | Same as the federal income tax deadline |
| Threshold | Lower threshold, regardless of where you live | Higher threshold, varies by residency |