FBAR forms and rules for 2014
As you may already know, the U.S. Government’s Financial Crimes Enforcement Network, FinCEN, has now taken over the responsibility for receiving the FBAR form 90-22.1. However, due to a heavy on-going battery of questions from concerned entities and individuals, FinCEN has revamped this form into the current Form 114. Please note that this Form 114 now supercedes the old Form 90-22.1 and must now be filed ONLY ELECTRONICALLY. You are prompted to seek the form and filing on the BSA E-Filing System website. The system allows the filer to enter the calendar year reported, including past years, on the online. It also offers an option to “explain a late filing,” or to select “Other” to enter up to 750-characters within a text box where the filer can provide a further explanation of the late filing or indicate whether the filing is made in conjunction with an IRS Amnesty or other compliance program.
FinCEN Form 114, Report of Foreign Bank and Financial Accounts, is used to report a financial interest in or signature authority over a foreign financial account. The FBAR must be received by the Department of the Treasury on or before June 30th of the year immediately following the calendar year being reported. The June 30th, 2014 filing date for tax year 2013 will not be extended.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value, and shares in a mutual fund or similar pooled fund (i.e., a fund that is available to the general public with a regular net asset value determination and regular redemptions).
Joint Account. A financial account type listed above owned jointly by two or more persons.
A foreign financial account is a financial account located outside of the United States. For example, an account maintained with a branch of a United States bank that is physically located outside of the United States is a foreign financial account. An account maintained with a branch of a foreign bank that is physically located in the United States is not a foreign financial account.
A trust beneficiary with a financial interest in a trust is not required to report the trust’s foreign financial accounts on an FBAR if the trust, trustee of the trust, or agent of the trust: (1) is a United States person and (2) files an FBAR disclosing the trust’s foreign financial accounts.
There are additional salient differences than the few mentioned above. For more information, please contact us at your earliest convenience.