FBAR Deadline Still April 15 for Taxpayers with Foreign Bank Accounts

The Bank Secrecy Act requires U.S. persons to file a FBAR if they have:

1. Financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account in a foreign country, and
2. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.

Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them.

A U.S. person is a citizen or resident of the United States or any domestic legal entity such as a partnership, corporation, limited liability company, estate or trust.

The 2021 FBAR must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is only available through the BSA E-Filing System website. Taxpayers who are unable to e-file their FBAR must call FinCEN at 800-949-2732, from outside the U.S. 703-905-3975.

Penalties for failure to file an FBAR

Those who don’t file an FBAR when required may be subject to significant civil and criminal penalties that can result in a fine and/or prison. The IRS will not penalize those who properly reported a foreign account on a late-filed FBAR if the IRS determines there was  reasonable cause for late filing.

More details and help available

IRS.gov has several resources available 24 hours a day:

• Fact Sheet 2021-07
• International Taxpayers page,
• IRS Tax Map
• IRS FBAR Reference Guide
• FAQs About International Individual Tax Matters
• FinCEN’s website Reporting Maximum Account Value.