Financial Resource

You know June 30th is the last day to report your foreign bank accounts details (fbar) to IRS.

So remember, if you’re an American citizen, and have over K in foreign bank account, savings account, you need to file this report (FBAR FORM) by June 30.

Deadline for 2010 FBAR forms is JUNE 30, 2011 – and unlike regular IRS tax forms.

  U.S. taxpayers including citizens, residents, and entities that have foreign financial accounts totaling more than ,000 at any point during the year.

  Foreign bank and brokerage accounts are generally included, as are offshore mutual funds or pooled investments.  However, hedge and private equity funds generally don’t count.

  The penalties for failure to file are considerably worse than tax penalties.  Failing to file an FBAR can carry a civil penalty of ,000 for each non-willful violation.  But if your violation is found to be , the penalty is the greater of 0,000 or 50% of the amount in the account for violation–and each year you didn’t file is a

If you own a foreign bank account, brokerage account, mutual fund, unit trust, or other financial account (including private pension savings in a foreign institution), then you may be required to report the account yearly to the Internal Revenue Service. Under the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (FBAR), if

The person has financial interest in, signature authority or other authority over one or more accounts in a foreign country, and

The value of the account exceeds ,000 at any time during the calendar year.

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A United States person is not prohibited from owning foreign accounts. The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.  The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law.  Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.

Civil and criminal penalties for non-compliance with the FBAR filing requirements are significant. Civil penalties for a non-willful violation can range up to ,000 per violation. Civil penalties for a willful violation can range up to the greater of 0,000 or 50 percent of the amount in the account at the time of the violation. Criminal penalties for violating the FBAR requirements while also violating certain other laws can range up to a 0,000 fine or 10 years imprisonment or both. Civil and criminal penalties may be imposed together.

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