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FBAR Filing Requirements​

US persons, citizens, residents, and domestic corporations are subject to US Income Taxation of their worldwide income.

 

If you have a financial interest or signature authority over foreign financial accounts you may be required to file the FBAR. If the aggregate value of foreign financial accounts exceeds $10,000 at any time during the year, you are required to file the FBAR for Foreign Bank and Financial Accounts.

 

This form is  due June 30th each year and there is no extension for filing this form. It must be filed by June 30th. It is technically not a tax form but does require most of the same information.

 

You file this online with the US Federal Treasury. The penalties for failure to file are harsh. It is $10,000 for non-willful failure but if you knowingly fail to file the penalty is $100,000 or 50% of the balance in the account at the time of the violation for each violation. Also, criminal charges may apply as well with fines up to $500,000 and or 10 years in prison.

 

This filing includes bank accounts, security accounts, insurance or annuity accounts, or other financial accounts including foreign retirement accounts like IRA's.

 

Just owning foreign stocks does not necessary require filing the FBAR if you purchased these securities from a United States broker or financial advisor. However, if you purchase these stocks directly from a foreign company, and they meet the threshold for filing, you may be required to file.