NEW INTERIM GUIDANCE LIMITING FBAR PENALTIES. Non-willful penalties might be avoided if there is “reasonable cause” for the failure to timely file the FBAR. The statutory civil penalties might be $10,000 per year for a non-willful failure but a willful failure to file could, by statute, be subject to civil penalties equivalent to the greater of $100,000 or 50% of the balance in an unreported foreign account, per year, for up to six tax years. The failure to timely file the FBAR can be subject to civil penalties and possibly criminal sanctions (i.e., imprisonment). This article merely addresses the statutory requirements without opining on the practical aspects associated with non-resident U.S.

person is typically located in their country of residence and, as such, is not “foreign” in the common sense of the term. since the “foreign account” of a non-resident U.S. residents feel that the FBAR requirements should be limited to U.S. and trusts or estates formed under the laws of the United States.

residents entities, including but not limited to, domestic corporations, partnerships, or limited liability companies created or organized in the U.S. persons and are not limited by the residency of the person since the laws of the U.S. Note that, by statute, these FBAR provisions apply to all U.S. persons having a financial interest in or signature authority over one or more foreign financial accounts – including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account – having an aggregate value exceeding $10,000 at any time during 2014 is generally required by the Bank Secrecy Act to report their interest in the account by electronically filing by June 30, 2015, a “Report of Foreign Bank and Financial Accounts” (FBAR).

22.1 disclosure form pdf