FBAR – New Enforcement!
FOREIGN BANK ACCOUNT REPORTING
Please note that this information is current through October 15, 2009. The deadline for FBAR reporting has passed for the year. For more information please contact the IRS or follow one of the links below.
ABOUT FBAR
Basics about Foreign Bank Account Reporting can be found on the IRS web page: “FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) – Filing Requirements.” This link also tells how to file FBARs for PRIOR YEARS, and how to AMEND a previously filed FBAR.
PREVIOUS EXTENDED DEADLINE
The extended deadline for filing 2008 and prior years TD F 90.1.22 Forms was Sept. 23, 2009. Details are on the IRS web page: “September 23 Deadline for Some FBAR Filers.” (See above for final extended deadline.)
WHAT TYPES OF ACCOUNTS MUST BE REPORTED?
Details on various forms of foreign financial accounts are on the IRS web page: “FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) – Financial Accounts.”
ARE YOU REQUIRED TO FILE?
IF you are a US Person and have a financial interest in or signature or other authority over any foreign financial accounts as defined in the above section – AND IF the aggregate value of these accounts exceeds $10,000 at any time during the calendar year – YOU HAVE A LEGAL REQUIREMENT TO FILE THIS FORM.
Details on what qualifies as a “US Person” are detailed on the IRS web page: “FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) – United States Person”
EXCEPTION (TEMPORARY) OF FBAR RULES for NON-US PERSONS
Please see IRS Announcement 2009-51 dated June 5, 2009 regarding a temporary exception of FBAR rules for non-US persons.
ABOUT THE FORM TD F 90.22.1
1) The deadline is an ARRIVAL deadline, not a proof of mailed by deadline.
2) If you have multiple accounts that require more than one page, the full form and instructions can be found on the IRS website at: http://www.irs.gov/pub/irs-pdf/f90221.pdf. If you only require the basic single account version of the form, fill out only the first page of theIRS pdf.
FINE-PRINT IRS DETAILS REGARDING FBAR
Further details published by the IRS regarding FBAR can be found at: “Workbook on the Report of Foreign Bank and Financial Accounts (FBAR).” This document includes details on fines and penalties; they are not pretty.
WHAT THE WALL STREET JOURNAL SAYS:
See the latest information on FBARs as reported just days ago on July 20th in the WSJ: “IRS Gets Tougher on Offshore Tax Evaders.” This gives you a sense of the governments attitude toward anyone having an offshore account; you’re guilty until you prove you are innocent.
FINAL NOTE:
Because of the financial and legal liability issues and stiff penalties involved, and after consultation with our malpractice insurance carrier, GlobalTaxHelp cannot file this form on behalf of clients. Anyone required to file this form must do so directly. There is no provision for e-filing; paper must be used.
FBAR rules have become a major irritant, to be sure, but a fact of expat life these days, indeed the governments expanded compliance net extends to many more “US persons” than just expats. Make sure you know your status and your possibility of being required to file such reports..
Finally, I strongly suggest using FedEx, DHL or certified mail so you have proof of mailing and proof of arrival by the due date – September 23rd, 2009 for 2008 and prior year reports – and June 30th of each year starting with tax year 2009.