To address our clients’ burgeoning international interests, from investments to regular travel, inheritances, and family members overseas, McManus & Associates created an International Practice Group. These professionals are devoted to keeping our clients compliant by meeting proper filing requirements, including those outlined under the Bank Secrecy Act.
The Bank Secrecy Act gave the Department of Treasury the authority to collect information from US persons who have a financial interest in, or signatory authority over, accounts maintained with financial institutions located outside of the US. This provision of the Bank Secrecy Act requires that, if the aggregate maximum value of the foreign financial accounts exceeds $10,000 at any time during the calendar year, you are required to report the accounts annually to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR).
Currently, for the 2015 tax year, owners of foreign accounts must e-file by June 30th, with no extensions permissible. However, beginning with the 2016 tax year, the FBAR will be due on April 15th, and the taxpayer will be allowed to request an additional six months to file (October 15th deadline).
8 FBAR Missteps
- Failure to File
- Miscalculating the $10,000 aggregate filing threshold
- Failure to report accounts if you have signature authority
- Failure to report a foreign life insurance policy or annuity
- Failure to file by entities that are disregarded for tax purposes
- Failure to file one’s own FBAR by a US person who owns more than 50% of an entity
- Non-filing by Minors
- Failure to follow record-keeping requirements