FBAR is an acronym for Foreign Bank and Financial Accounts Report. Failing to file an FBAR can result in significant penalties, so it’s important to understand whether or not you need to file one. This article will explain everything you need to know about FBARs, including who needs to file them and how to go about doing so.
What is FBAR and Who Needs to File One?
FBAR is a report of all foreign financial accounts that have an aggregate value of more than $10,000 at any time during the year. This includes bank accounts, brokerage accounts, mutual funds, trusts and any other type of foreign financial account. If you have a foreign financial account and don’t file an FBAR, you could be subject to some serious penalties. So make sure you know whether or not you need to file an FBAR before it’s too late!
There are a few exceptions to who needs to file an FBAR. If you are a U.S. resident and your foreign financial account is held by a foreign branch of a U.S. bank, you don’t need to file an FBAR. And if you are a U.S. citizen and your foreign financial account is held by a foreign government or its political subdivision, you also don’t need to file an FBAR.
How Do You Go About Filing an FBAR Correctly and on Time?
When it comes to filing an FBAR, there are a few things you need to know in order to do it correctly and on time. Here are a few tips on how to go about doing so correctly:
- Make sure you gather all the information about your foreign financial accounts before you start filling out the form. This includes the name of the account holder, the account number, the account balance and the country where the account is located.
- Fill out the form accurately and completely. If there are any questions on the form that you don’t understand, be sure to ask your accountant or tax advisor for help.
- File your FBAR electronically using the BSA E-Filing System.
- Make sure you submit your FBAR by the due date. If you miss the due date, you can be subject to significant penalties.
Contact MKS&H for Help Filing Your FBAR
FBAR is a very important report to file if you have foreign financial accounts. It’s crucial to gather all the information about your accounts before filling out the form, and make sure you file it by the due date. Failing to do so could result in significant penalties. So be sure to familiarize yourself with FBAR requirements and submit your report on time! MKS&H is here to help you navigate the tax process. Contact us today to schedule a consultation with one of our accountants!
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.