17 Jun 2014 Client Reminder Regarding FBARs (FinCEN Form 114, formerly TD F 90-22.1)
All United States persons, including citizens, green card holders, and individuals considered US residents based on the duration of their stay in the United States, are required to annually report their ownership of, and signature authority over, foreign bank accounts. The form for such reporting is commonly referred to as the FBAR (FinCEN Form 114, formerly TD F 90-22.1), which form must be filed electronically with FinCEN by June 30th of each year (reporting ownership or signature authority for the prior year). Failure to file the FBAR can carry significant monetary penalties and even criminal charges. Persons that have the obligation to file the FBAR and have missed the filing in prior years should consult their accountant or other tax professional.
Many companies are engaged in business internationally, and the officers, managers and other business operators frequently have signature authority over foreign bank accounts legitimately used in connection with foreign business or operations. Persons with such signature authority are required to file the FBAR on an annual basis and run the risk of significant penalties for failure to do so.
In addition, any person that owns, directly or indirectly, more than 50% of a company is required to file the FBAR on an annual basis as an owner of the foreign accounts held by such company.
The US government and many foreign governments have increased scrutiny and focus on foreign account transparency. To avoid monetary and criminal exposure, United States persons should be diligent in their reporting of foreign accounts.
Please contact Jon Golub of the Royse Law Firm, PC, at firstname.lastname@example.org, if you would like to discuss the contents of this reminder.Disclaimer: This blog and website are public sources of general information concerning our firm and its lawyers, as well as the information presented. They are intended, but not promised or guaranteed, to be correct, complete, and up-to-date as of the date posted. This blog and website are not intended to be, and are not, sources of legal opinion or advice. The materials, information, and communications on this blog and website do not apply to any particular person, entity, or situation, and do not apply to you or to your specific situation. You will need to consult with an attorney and/or other appropriate professional about your specific situation. Thank you.