FBAR 1: Understanding and Complying with FBAR (Reporting of Foreign Financial Accounts)

Steps for FBAR Compliance:
1. List investments made in foreign countries and money in foreign accounts/investments
2. Determine which foreign financial accounts to be included for respective filing (FBAR 2)
3. Verify if FBAR is applicable based on filing status and reporting threshold (# 5, 6, 7)
4. Gather information required of each of your foreign financial asset (#8, 9) (FBAR 3)
5. Submit/file the form (#13) with respective department (#4) before deadline (#10, 11) to save penalty (#12)

#	Question	FBAR
1	Purpose	Aid in Law Enforcement
2	Requirement	Old
3	Name of Act or Sponsor	Bank Secrecy Act (BSA)
4	Agency/ Administrator	Financial Crimes Enforcement Network (FinCEN) of Department of Treasury
5	Who must file?	U.S. citizens, resident aliens (Anyone filing Form 1040), trusts, estates, and domestic entities
6	What to Report	Foreign Financial Account (Please see another table for details)
7	Reporting Threshold (Total Value of Assets)	$10,000 at any time during the calender year
8	What is to be reported?	Name, Type of filer, Type of account, SSN or ITIN, Highest value, Name and Address of the foreign asset/ account, Account number or other designation
9	How maximum account or asset values determined?	Use account statements to determine the maximum value using the end of the year exchange rate.
10	When due?	Received by June 30
11	Extensions?	No extensions. File and then revise.
12	Penalties: Non-Willful	Civil penalty not to exceed $10,000
	Penalties: Non-Willful – Reasonable Cause	Penalty may not apply
	Penalties: Willful-Civil	Civil penalty: $100,000 or 50% of balance
	Penalties: Willful – Criminal	Criminal penalty up to $250,000 and/or 5 year imprisonment
13	Where to file?	Mail to: Department of the Treasury, P.O. Box 32621, Detroit, MI 48232. Express mail to: IRS Enterprise Computing Center Attn: CTR Operations, Mailroom, 4th Fl., 985 Michigan Ave., Detroit, MI 48226.