June 30th Deadline Approaches for Taxpayers with FBAR Requirements

Though tax time is well behind us, certain citizens with offshore assets need to be thinking about their FBAR requirements. These requirements, designed to make it more difficult for taxpayers to conceal assets and income offshore, are separate from your normal tax return. If you meet the FBAR filing requirements, your filing deadline is June 30.

Taxpayers must file an FBAR if the individual or entity had a financial interest in or a signature authority over one or more financial accounts located outside of the United States, and the aggregate value of all of the applicable foreign financial accounts exceeded $10,000 at any point during the calendar year in question. This applies to US citizens, US residents, trusts or estates formed under US laws, and entities including corporations, partnerships, and limited liability companies which were created or organized in the US or under the laws of the US. Exceptions to this filing requirement include the following:

  • Certain financial accounts owned jointly by spouses
  • Individuals included in consolidated FBAR’s
  • Correspondent/Nostro accounts
  • Financial accounts owned by government entities
  • Financial accounts owned by international financial institutions
  • Owners and beneficiaries of United States IRA’s
  • Participants and beneficiaries of tax-qualified retirement plans
  • Individuals with signature authority over, and no financial interest in, an offshore financial account
  • Trust beneficiaries, if the individual reports the account on an FBAR filed on behalf of the trust
  • Financial accounts maintained on a US military banking facility

If you are required to file, you will need to fill out and submit Form 114 on the BSA E-Filing System website. Should you require any assistance with your finances, please contact Seattle CPA Alisa Na during normal business hours.