FBAR reporting of funds held in overseas bank accounts may be compulsory.
But doing it yourself isn’t.
When do I need to file an FBAR?
If you are an American citizen living abroad and have financial interests outside of the U.S., you must file an annual report separate to your Federal Taxes.
Expat Americans come to us because they have found it confusing figuring out which accounts are notifiable and how much to declare. At Mir taxes, we make it simple and ensure reporting is accurate and filed on time.
You are required to file a Report of Foreign Bank and Financial Accounts (FBAR) or FinCEN Form 114 if:
You are a U.S. person (citizen, resident alien, trust, estate, or domestic entity) who has had any financial interest in, or signature authority, over a financial account located outside of the United States. And where the aggregate value of all foreign financial accounts exceeds US$10,000 at any one time during the reporting year.
Remaining compliant with overseas financial reporting is easy when you choose Mir Taxes. Book an appointment today to discuss your needs.
Why work with Mir Taxes
Expert Advice, Every Time
There are penalties for failing to report your foreign bank account balances. We are here to help ensure this does not happen and that all obligations to report are met.
Safe and Secure Filing
Our password protected collection system, ensures your information remains safe and private. It also stays in one place for easy referral.
Save Time and Money
As certified tax agents, we can file your returns for you online and receive confirmation that your file is under action much quicker than by post. No risk of losing documents in the mail either.
Common questions we are asked about filling an FBAR:
Are there penalties for not filing the FBAR (FinCEN Form 114)?
Yes, you can be fined up to 50% of your balances for not filing the FBAR if required to do so. There are also penalties for underpayment of tax resulting from non-disclosed overseas financial assets, including criminal penalties. Contact us to discuss your circumstances and how you can avoid fines.
Do I have to report on every financial investment I make?
Yes and no. Some accounts require reporting on ownership and balance, while others only require the ownership to be reported. Those that do not require reporting on include:
- United States persons included in a consolidated FBAR.
- Foreign accounts owned by a governmental entity or an international financial institution.
- Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust).
- Foreign accounts maintained in an overseas United States military banking facility.
When do I need to file my FinCEN Form 114?
Form 114 is filed online to FinCEN in the U.S. Department of Treasury and submitted by April 15. An automatic extension to October 15 can be applied. We can file your FBAR for you and ensure you are never late.
Do I need to file a FATCA Form 8938?
This form requires similar information to Form 114 but is different in that it is sent to the IRS the same time as your Federal Tax Return. You can find more about FATCA here.
Figuring out the aggregate value of your accounts and which ones you have to report on can take time.
