Foreign Bank Accounts-How to file FBAR-FinCEN Form 114

Filing a FinCEN Form 114, commonly known as the Report of Foreign Bank and Financial Accounts (FBAR), is essential for U.S. citizens and residents with financial interests in foreign bank accounts that meet certain thresholds. Here's a step-by-step guide on how to file it:

Step-by-Step Guide to Filing FinCEN Form 114 (FBAR):

1. Determine if You Are Required to File:
   
   
   
   
   • Who must file: U.S. citizens, residents, and certain non-U.S. persons with a financial interest in or signature authority over foreign financial accounts.
   
   
   • Threshold: If the aggregate value of your foreign financial accounts exceeds $10,000 at any time during the calendar year, you are required to file an FBAR.
   
   
   
   


2. Gather the Required Information: You will need the following details about each foreign financial account:
   
   
   
   • Account number.
   
   
   • Name and address of the foreign bank or financial institution.
   
   
   • Type of account (bank, securities, etc.).
   
   
   • Maximum value of the account during the reporting year.
   
   
   • Your relationship to the account (owner, joint owner, signature authority, etc.).
   
   
   
   


3. Register for a BSA E-Filing System Account: The FBAR must be filed electronically through the BSA E-Filing System. You must create an account on the system.
   
   
   
   • Visit the BSA E-Filing website: BSA E-Filing System.
   
   
   • Register by providing your personal information and creating a username and password.
   
   
   • You can’t file FinCEN Form 114 (FBAR) by paper or mail; The Treasury requires everyone to file online through the BSA E-Filing System in order to reduce errors and speed up the process
   
   
   • However, if you encounter difficulties with trouble filing online, you can request an exception to file a paper form
   
   
   • Contact the FinCEN Regulatory Helpline or send them a written explanation of why you can’t file online
   
   
   
   


4. Complete the FinCEN Form 114:
   
   
   
   • Log in to your BSA E-Filing account.
   
   
   • Select the appropriate form (FinCEN Form 114).
   
   
   • Fill in the required information about your foreign financial accounts.
   
   
   • Make sure to enter all the necessary details accurately.
   
   
   
   


5. Submit the Form:
   
   
   
   • Review your information to ensure accuracy.
   
   
   • Submit the form electronically through the BSA E-Filing System.
   
   
   • You will receive a confirmation email once the form has been successfully submitted.
   
   
   
   


6. Keep a Copy for Your Records: It's crucial to retain a copy of the submission and the confirmation for your records. The FBAR must be filed annually, and the due date is typically April 15 (with an automatic extension to October 15, if necessary).

Important Notes:

• No Filing Fee: There is no fee to file FinCEN Form 114.


• Penalties: Failure to file or file incorrect information can result in significant penalties, including civil and criminal ones.


• No Tax Filing: FBAR is not filed with your tax return but is an entirely separate submission to the Department of the Treasury.