As FBAR deadline looms, IRS and Treasury threaten penalties

American taxpayers with overseas accounts are required to report these accounts through the use of the Report of Foreign Bank and Financial Accounts form (FBAR). Failures to file this report with the Treasury’s Financial Crimes Enforcement Network (FinCEN) are not uncommon. Failures can stem from a lack of awareness of the requirement or simple confusion. The tax law responsible for this requirement is complex and some level of confusion is understandable.

A basic understanding of these requirements can help to ease some of the confusion that comes with required compliance.

Who needs to file an FBAR? The Internal Revenue Service (IRS) explains that American taxpayers who meet these two factors are generally required to file an FBAR:

  • Signature or actual authority over an account outside of the United States
  • Value of said account exceeds $10,000

This includes those who are citizens and residents as well as entities like businesses and corporations. The FBAR is due on April 15. In some cases, an extension is granted until October 15.

What if I do not file? Those who are required to file and fail to do so can face serious penalties. Monetary fines are steep and can include a $100,000 penalty or 50 percent of the funds within the account at issue.

Depending on the details of the allegations, a failure to file can also lead to criminal charges.

What if I need to come into compliance with tax reporting requirements for foreign assets? Those who wish to come into compliance with current tax law are wise to do so carefully. Various compliance options are available, including the voluntary disclosure program.

Determining the best option depends on the details of your unique situation. Contact an attorney to review these details and provide legal guidance.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1629 K Street NW, Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 703-621-7169
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map