FINCEN Form 114 – The #FBAR Basics – Part 1 – Good summary by @RachelMillios http://t.co/1cXmYiAGqL
— US Taxation Abroad (@TaxationAbroad) December 8, 2014
“FBAR” stands for “Foreign Bank Account Report”. Although the “FBAR” rules have been in existence since the 1970s, the IRS is now enforcing them with a vengeance. “FBAR” fines have the potential to “bankrupt you”.
What you need to understand:
If the funds in your total bank and brokerage accounts (including retirement accounts) exceed $10,000 (which means almost everybody), then those accounts and their highest balance in the year:
1. Need to be reported to the U.S. Treasury (not the IRS); and
2. The records of these accounts must be saved for five years.
Past FBAR problems can be fixed. Future FBAR problems must be avoided!
To learn more about Mr. FBAR and the FBAR rules read this FBAR summary.
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