Any U.S. person with a financial interest in or authority over foreign financial accounts may be required to file a Report of Foreign Bank and Financial Accounts (FBAR).
An FBAR must be filed if the aggregate value of all foreign accounts exceeds $10,000 at any time during the calendar year.
When Is the FBAR Due?
- The FBAR is due April 15 of the following calendar year.
- Automatic extension: If not filed by April 15, an automatic extension applies — no need to formally request it.
Key Definitions
Understanding the FBAR rules starts with these critical terms:
U.S. Person
Includes:
- U.S. citizens (adults and children)
- Resident aliens
- Certain business entities, such as:
- Corporations
- Partnerships
- Trusts
- Limited liability companies (LLCs)
Foreign Financial Account
- An account is considered foreign if it’s maintained at a financial institution located outside the United States,
even if the institution is a U.S.-based bank.
Financial Interest
You are considered to have a financial interest in a foreign account if:
- You are the owner of record or holder of legal title, even if the account is for someone else’s benefit.
- A financial interest also exists if the owner of record or title holder is an entity controlled by or on behalf of a U.S. person.
Why It Matters
The FBAR rules are complex, and the penalties for noncompliance can be severe, even for unintentional violations.
📞 Contact us if you’re unsure about your FBAR obligations — we can help you stay compliant and avoid costly penalties.
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