Reminder of FBAR Filing Requirements

Reminder of FBAR Filing Requirements

PPG Partners would like to remind those with foreign assets that they may need to file a Report of Foreign Bank and Foreign Accounts (FBAR). An annual FBAR must be filed with the Department of the Treasury whenever a taxpayer has an interest in, or signature authority over, a foreign financial account(s) with an aggregate value over $10,000 at any time during the calendar year. It makes no difference if the average amount in the account(s) during the year is less than $10,000 or all the money is withdrawn by the end of the year. If the account(s) held more than $10,000 any time during the year, the FBAR must be filed.

Moreover, the FBAR filing requirement is not limited to foreign accounts containing cash. You also need to file a FBAR if a foreign account has non-monetary assets of more than $10,000. For example, the cash surrender value of a life insurance policy is such a non-monetary asset.

The penalties for failing to file FBARs are severe. There is a maximum $10,000 penalty if your failure to file is found non-willful. However, if you are found guilty of willfully not filing a FBAR, the penalty may be the greater of $100,000 or 50% of the balance in the account at the time of the violation.

The filing deadline for the FBAR is April 15th, with a six-month extension available upon request by the taxpayer. Please contact PPG Partners, LLC if you would like assistance filing your 2017 FBAR.