FBAR Filing: Who Must File, Why, and When
Introduction The Report of Foreign Bank and Financial Accounts (FBAR), required under the Bank Secrecy Act of 1970 (BSA), mandates U.S. persons with interests in foreign financial accounts exceeding a certain threshold to report this information annually to the Department of the Treasury. This disclosure helps combat tax evasion and improve financial transparency. Below, we explain who must file an FBAR, the reasons for this requirement, and its annual deadlines. Who Must File the FBAR? General Rule A U.S. person must file the FBAR (via FinCEN Form 114) if both of the following conditions are met: Financial account requirement: The U.S. person has a financial interest in or signature or other authority over at least one foreign financial account located outside the United States. Aggregate value threshold: The combined value of all such foreign accounts exceeded $10,000 at any time during the calendar year. (31 U.S.C. § 5314(a); 31 C.F.R. § 1010.350(a)). Who Qualifies as a U...