What if you don’t file the FBAR on time? What are the FBAR penalties?
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Dear Tax Talk,
My question is regarding the filing period of FBAR. I know the deadline is June 30, 2015, for tax year 2014. What is the FBAR filing period for tax year 2014?
The FinCEN Form 114, Report of Foreign Bank and Financial Accounts, or FBAR, is filed for the calendar year, which ends on Dec. 31, and the deadline for the 2014 filing is June 30, 2015. There is no provision for extending the deadline, so gather your information and get this done to avoid the possibility of FBAR penalties.
Penalties for failing to file the FBAR
Failure to file a correctly completed FBAR may result in a civil penalty of up to $10,000 for nonwillful violations that are not due to a reasonable cause. The penalty for willful violations may be the greater of $100,000 or 50 percent of the account balance per violation.
The FinCEN Form 114 was previously known as TD F 90-22.1 and now must be filed electronically at bsaefiling.fincen.treas.gov by all U.S. persons, including citizens, resident aliens, trusts, estates and other domestic entities that have an interest in foreign financial accounts with an aggregate value that exceeds $10,000 at any time during the calendar year. For foreign currency, you will need to take the highest value in each account during the year and convert it to U.S. dollars using the exchange rate for the last day of the year.
Be sure to keep copies of the form for each year, along with the confirmations that you will receive via email confirming that your filing has been accepted, as this will be your proof that you have complied with the law.
Thanks for the great question and all the best to you.
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