Year End: Foreign bank account reporting

If you have an interest in a foreign bank accounts, it must be disclosed; failure to do so carries stiff penalties. You must file a Report of Foreign Bank and Financial Accounts (FBAR) if:

1. you are a U.S. resident or a person doing business in the United States;
2. you had one or more financial accounts that exceeded $10,000 during the calendar year;
3. the financial account was in a foreign country; and
4. you had a financial interest in the account or signatory or other authority over the foreign financial account.

If you are unclear about the requirements or think they could possibly apply to you, please ask your CPA.

The deadline for filing the form was moved up and it is now due April 15. However, a six-month extension is available. If an individual is abroad, the due date is automatically extended until June 30, with an additional four-month extension available until October 15.