Reporting Bank Accounts Outside the United States – FBAR – FinCEN 114
If you have a financial interest, or authority over a financial account outside the United States, including bank accounts, mutual funds, or other foreign financial accounts that exceed certain parameters within the last year, it is likely that you have to file a report with the IRS.
Fiscal residents and US citizens, as well as domestic entities, that have authorized bank accounts or financial interests outside the US, are obliged to report these accounts in the event that the sum total of these accounts exceeds $10,000 USD sometime in the year being reported (2014).
This means that if you own or have an authorized signature on one or more accounts abroad, and the aggregate balance of these exceeded $10,000 at any time during 2014, you have the obligation to report them.
Accounts are reported using the FinCEN Report Form 114, also known as FBAR. The deadline for submission is June 30, 2015 and there is no extension available. Failure to report this information may incur in penalties that range from $10,000, up to 50% of the unreported amount, up to a max of $100,000 or even criminal charges and jail time.
For more information, you can access this link: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR.
At GBS Group we are at your disposal to help with any questions you might have about this topic. Our Financial and Tax Advisory team is available to meet your needs. Contact us and we will gladly assist you.