Do you have bank accounts in Foreign Countries? The IRS wants to kow about that!

Oct 13, 2022

The Internal Revenue Service today reminded us that the extension deadline to file your annual Report of Foreign Bank and Financial Accounts (FBAR) is October 15.

Filers who missed the April 15 annual due date earlier this year received an automatic extension until October 15, 2022, to file the FBAR. They did not need to request the extension.

Who needs to file?

The Bank Secrecy Act requires U.S. persons to file an FBAR if:

  1. They have a financial interest in or signature or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account located outside the United States, and
  1. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year 2021.

Because of this threshold, the IRS encourages U.S. persons with foreign accounts, even relatively small ones, to check if this filing requirement applies to them. A U.S. person is a citizen or resident of the United States or a domestic legal entity such as a partnership, corporation, limited liability company, estate or trust.

There is NO TAX DUE with this filing. The FBAR is an information filing.

Questions? Please do reach out to me as the penalties for non filing can be severe.

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