January 10, 2017
Taxpayers are supposed to submit FBAR form to the treasury department. But only a few of them know about reporting it.
FBAR, Foreign Bank, and Financial Accounts is a form that IRS uses to collect information. It is a treasury form and needs to be filed every year by the taxpayers who have foreign accounts. It is sent directly to the Treasury Department. FBAR form makes it easier to improve data disclosed on bank accounts. FBAR can be used to determine if the taxpayers are underreporting income or using offshore accounts for an illegal purpose. FBAR form is not a common issue among all. "What is a FBAR filing,” "Who should file the FBAR Form,” "rules regarding FBAR filing” are the common issue for all.
Sometimes you may not even know that you are required to
comply it. But it can’t be an excuse. To know the laws including the changes of
it is the responsibility of every citizen. FBAR has to be submitted by every
resident (green card holder) or citizen of United States, who files taxes in
the US and owns or has authority over a foreign bank account or financial
account or interest in which the total balance is more than $10000 USD.
The FBAR Form need to be filed under various rules:
Taxpayers need to file and submit the FBAR form by June 30th of every year. As it is a treasury form, so it has a different date from the IRS tax deadline. The FBAR form is considered as filed after getting the complete receipt by the Treasury. That is why the taxpayer needs to mail the form early so that there is enough time for delivery and it can be received by the Treasury before the deadline.
Every taxpayer with a foreign account or foreign accounts that have had over $10000 at any time of the year has to file the FBAR form. And a taxpayer can file a disclosure form is he/she has more than one account, and the aggregate amount of the balances of all account exceeds $10000 at any time of the year.
If any taxpayer fails to file the FBAR form within the deadline, he/she might be fined with penalty fees $10000, even if the reason was unintentional. But in the case of intentional ignorance, each taxpayer will be fined with either the $100000 penalty r half of the funds in the accounts, whichever is higher. That person might face criminal charges too.
FBAR disclosure consists of brokerage accounts, trust, annuity funds, investment funds and also other cash, retained by banks. Disclosure will not be imperative if the money is invested in foreign firms in the US. It also applies to funds deposited with a U.S. institute but invested in foreign assets, as long as the account holder won’t have any access to the foreign assets.
December 29, 2016
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