If you have a financial interest in or signature authority over a foreign financial account exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the IRS by filing a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Specifically, Form 114 is required to be filed if during the year—
- You had a financial interest in or signature authority over at least one foreign financial account (which can be anything from a securities, brokerage, mutual fund, savings, demand, checking, deposit, or time deposit account to a commodity futures or options, and a whole life insurance or a cash value annuity policy) and;
- The aggregate value of all such foreign financial accounts exceeded $10,000 at any time during 2014.
The 2014 Form 114 must be filed by JUNE 30, 2015 and cannot be extended. Furthermore, it must be filed electronically. The penalty for failing to file Form 114 is substantial—up to $10,000 per violation (or the greater of $100,000 or 50% of the balance in an account if the failure is willful).
To File the Form 114 Yourself, go to:
* Click on “Become a BSA E-Filer”
* Click on “File an Individual FBAR (FinCEN Form 114)“
* Complete the form and submit
If we have not already contacted you about filing this form for you, please give us a call. As always, please contact us if you have any questions or concerns regarding this form.
Hamilton Tharp, LLP