Foreign Bank and Financial Accounts

Foreign Bank and Financial Accounts


The Foreign Bank and Financial Accounts Regulations (FBAR) form came into existence as part of the Bank Secrecy Act of 1970 (BSA) with the aim to prevent taxpayers from avoiding paying taxes by hiding assets overseas.

However, the IRS has enforced foreign financial account reporting rules for American taxpayers. Widespread non-compliance over the years arose confusion and misunderstanding of the filing requirements’ nuances as from willful negligence.

This form is used to report all the foreign financial accounts of a resident person which includes brokerage accounts, bank accounts, mutual funds, and more.

Who Needs to File FBAR

A resident of the United States including a corporation, partnership, limited liability company, trust, and estate, must file an FBAR to report a financial interest if the aggregate value of those foreign financial accounts located outside the U.S.A exceeds $10,000 at any time during the previous calendar year reported.

Who Doesn’t Needs to File FBAR

Any resident individuals for the calendar year if: All your foreign financial accounts are reported on a consolidated FBAR. All your foreign financial accounts are jointly owned with your spouse and: You have completed and signed FinCEN Form 114a authorizing your spouse to file FBAR reports on your behalf.

When To File FBAR

The FBAR deadline is April 15th as well. If you cannot file the form before the FBAR filing deadline, there is an automatic FBAR extension to October 15. If you need to file the form later than October 15, you will have specific requirements to extend the deadline further. Which All Accounts Are Covered Under FBAR:

1. Securities accounts, including brokerage accounts, securities derivatives, and other financial instruments.

2. Bank accounts, including savings accounts, time deposits, etc.

3. Cryptocurrency, including Bitcoin, and other forms of digital currencies

4. Mutual funds or other similar pooled funds

5. Insurance policies include whole life insurance, business insurance, etc.

6. Any other accounts maintained in a foreign financial institution or with a person or company rendering the financial institution’s services

Penalties Under FBAR

The penalties under FBAR can be civil as well as criminal liabilities depending upon the nature of the crime or Negligent violation.

Criminal Liabilities The maximum criminal penalties that may apply are as follows

  • Willful failure to file or maintain required records – Imprisonment Up to five years in prison with a fine of up to $250,000, or both.
  • Willful failure to file or maintain required records while also violating specific other laws Imprisonment of up to 10 years with a fine of up to $500,000, or both.
  • Knowingly and willingly falsifying an FBAR – Imprisonment up to five years in prison with a fine of up to $10,000, or both.


Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.

Rajesh Srivastava
Rajesh Srivastava
Startup CEO
Read More
Great services and expertise. Highly recommended, Quick work and provided good support for the entire process. Made things very easier for us and I got my first ever Trademark for my product in just no time. I recommend their services to all the Startups for a hassle-free registration and other services. Again Thank You So Much Team Legal Suvidha... Good work...
Read More
Excellent service and has been very timely in response. They are very patient too and guided us with the right steps even though we approached them with very few days left before the deadline. I highly recommend them to other startups who need legal advice and do all the paperwork at the year-end. And we would approach them for all our future requirements as well.
Krish Mundarath
Krish Mundarath
Read More
We highly recommend them. Best in class services. Thank you for helping me through the process and for prompt replies. All the Best in your Endeavors. We highly recommend them. Best in class services. Thank you for helping me through the process and for prompt replies. All the Best in your Endeavors. I will surely consider them for future work.
Inamul Hashmi
Inamul Hashmi
Read More
Legal Suvidha filed my GST, Income Tax Returns for my business Happy by their service. They are Excellent, cost effective, efficient, co-operative & Genuine service providers keep up the good work in the future. Thank you for shaping my business in the right direction. I would suggest others to take up their services they are better than other competitions present in the market.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.