Foreign Bank Account Reporting Updated Reproting Requirements
Posted on 06.01.11
Updated Reporting Requirements for FBAR
New regulations came out earlier this year regarding US resident’s and US entity’s reporting requirements of foreign accounts. These rules are very complex and encompassing, but generally include the following:
- Did you have any signature authority or financial interest in any type of foreign bank account or investment account (including life insurance policies and Canadian retirement accounts) with an aggregate balance over $10,000 at any time during 2010?
- If you have any type of authority over the account or a direct or indirect financial interest in a foreign account, you need to determine if there is a filing requirement.
- A US resident or US entity could have an indirect financial interest if they own greater than 50% of a foreign or US company that has a foreign bank account. If there is an indirect financial interest, then reporting is also required.
You need to know your reporting requirements because civil non compliance penalties are very high at $10,000 per non filing or late filing. Penalties for willful failure to file are up to $100,000. The reporting is due to be received by the US Department of the Treasury on June 30th.
Read More: IRS FBAR web page