Important Pointers For Filing FBAR
The last two decades have witnessed an unparalleled degree of globalization especially in the financial services, despite the financial crisis that had a hindering effect on the economy sometime back. This has increased cross-border banks and other capital flows dramatically. Several banks have ventured to foreign lands and have set up their presence in other lands. Owing to the importance of foreign banks in most countries, it is essential to understand the motivations of foreign banks prior to your entry in a certain host country. It is crucial to know how are they different from domestic banks and what impact they have on the financial sector development and their lending stability.
However, if you are a citizen of America then FBAR i.e. Foreign Bank and Financial Account Report is form that you ought to file for complying with the requirements of reporting Foreign Bank Account and financial accounts to the Unites States tax authorities. This applies to one and all residing in United States having a financial interest or an authority on any financial account in a foreign country. In addition to that, it is also applicable in case the aggregate value of these accounts in foreign countries exceeds US$10,000 in a year. The form that needs to be filled up formally is the Treasury Department Form 90-22.1. However, it becomes easy to understand the process when there are answers to some of the important questions pertaining to it.
Foreign Bank and Financial Accounts that can be reported?
Given below are some of the financial accounts that need to be reported in the Foreign Bank Account report, as and when you qualify for it:
* Bank accounts (checking and savings)
* Investment accounts
* Mutual funds
* Retirement and pension accounts
* Securities and other brokerage accounts
* Debit card and prepaid credit card accounts
* Life insurance and annuities having cash value
Date for filing the form?
The Treasury Form 90-22.1 needs to be filed annually on June 30th. Quoting the Internal Revenue Manual section 4.26.16.3.7 it is highlighted that the “The FBAR is considered filed when it is received in Detroit, not when it is postmarked.”
The repercussions of not filing Treasury Form 90-22.1?
Any person is entitled to file the TD F 90-22.1 for reporting about their foreign bank accounts that they are holding at presented. This needs to be done even if someone has missed the deadline of June 30th else the state has rigid penalties for the ones willingly failing to fill the report. To complete this process smoothly, you can seek help from leading tax planning agencies and consultants based in the United States. This would help you to avoid the strict penalties and complete the FBAR filing smoothly.
Read Also On: Overseas Voluntary Disclosure
Processing your request, Please wait....
