FBAR Time of Year

There is now one weekend left before US persons must complete their Foreign Bank Account Reporting (FBAR).  This is not a tax filing requirement. According to the United States Department of the Treasury:

“A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.”

A common misconception is that foreign bank account must only be reported by US residents.  This is incorrect – FBAR reporting is required of all US citizens regardless of where they reside. This includes green card holders and tax residents of the USA.

Another aspect that is often forgotten is that US persons must include in their report financial accounts over which they hold signature authority – think partners of firms, financial officers or even executive assistants who have authority on their boss’s bank account.  If in doubt check the rules.  The IRS website has a very useful FBAR guidance page here.

The deadline for submitting reports is June 30 and this can now be done online here.

If you need further advice on FBARs contact your US/UK tax advisor.