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Individuals with Foreign Assets Face June 30 FBAR Filing Deadlines by Tony Gutierrez, CPA


Posted on June 14, 2016 by Anthony Gutierrez

 

Federal tax laws require U.S. citizens and resident aliens to report and pay taxes on their worldwide income.  As a U.S. person, you are also required to report certain details about your financial interest in or signatory authority over foreign financial account.   A foreign financial account includes a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account located outside the U.S.

 

U.S. citizens and resident aliens have until June 30th to file electronically the FinCen Form 114, Report of Foreign Bank and Financial Accounts (FBAR), when the aggregate value in those accounts exceed $10,000 at any time during the tax year.  Failure to file an FBAR by the June 30th deadline may result in significant fines equal to the greater of $100,000 or 50% of the balance in the unreported account as well as criminal charges for willful violations.

 

Taxpayers should consult with a U.S. tax advisor or certified public accountant (CPA) to determine if they are required to file an FBAR.  In addition, depending on the aggregate value of foreign assets, certain taxpayers may also be required under the Foreign Accounts Tax Compliance Act (FATCA) to complete Form 8938, Statement of Foreign Financial Assets.

 

About the Author: Tony Gutierrez, CPA, is an associate director with Berkowitz Pollack Brant’s International Tax Services practice, where he focuses on tax and estate planning for individuals, families and businesses with domestic and foreign interests. He can be reached in the CPA firm’s Miami office at 305-379-7000 or via email at info@bpbcpa.com.