Filing FBAR or Report of Foreign Bank and Financial Accounts is a most prioritized IRS set of rules and regulations that asks the Expat, US citizens to disclose the details of the foreign bank accounts for their immediate tax regulation and information compliance.
• We help fill the Form 114. It is filed with the (FinCEN) Financial Crimes Enforcement Network -A Bureau that works for Treasury Department
• Anyone whose foreign financial accounts is over $10,000
• The deadline for filling the FBAR is June 30
• It is important to know that FBRAR is not a tax return compliance.
We provide exact information about the FBRAR filing requirement and also organize a webinar or a video conference as per your enquiry.
FATCA – filing is important and we stay up to the standards and provide facilities, reports, full information and analysis. FATCA and the acronym or Foreign Account Tax Compliance Act is a finance compliance reporting prerequisite for the Expat tax regulation and job stimulus report.
FATCA drafted in a complex manner. The Hiring Incentives to Restore Employment Act and thus demands immediate attention and smart advice, file for compliance.
FATCA applies to all US citizens who are working abroad.
FATCA related form 8938 is for taxpayers who are living abroad must be files within June 15.
FATCA related form 8938 is also for domestic citizens who have to file a return within April 15.
FATCA applies to foreign financial institutions and US Tax Payers with foreign accounts.
FATCA form 8938 is not similar, replace or otherwise affect a taxpayer’s obligation to file an FBRAR form 114.
Our expert tax advisory team provides you the full analysis and comparison report for an efficient tax payment compliance.
The eligibility criteria are as follows:
• The account birth detail is inside the US.
• The ex-pat has a US contact address.
• A US citizen who is an authorized signatory
• Bankers have the instructions to transfer the funds to an American account.
Filing your details is mandatory in June. We inform you of the latest changes.
You can discuss the filing measures and steps with our team. We would be guiding you through the whole process.
| Form 8938 | FinCEN Form 114 (FBAR) | |
|---|---|---|
| Who must file? | Specified individuals, which include US citizens, resident aliens, and certain non-resident aliens who have an interest in specified foreign financial assets and meet the reporting threshold. | US persons, which include US citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold. |
| Does the United States include US territories? | No | Yes, resident aliens of US territories and US territory entities are subject to FBAR reporting. |
| Reporting threshold (total value of assets) | For those living abroad, if the total is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or if filing a joint return and the value of your asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year (lower threshold amounts apply to individuals living in the US). | $10,000 at any time during the calendar year— this amount is aggregate (i.e., you have 2 accounts, one with $7000 and one with $4000 as its highest value, you will need to file). |
| When do you have an interest in an account or asset? | If any income, gains, losses, deductions, credits, gross proceeds, or distributions from holding or disposing of the account or asset are or need to be reported, included, or otherwise reflected on your income tax return. | Financial interest: you are the owner of record or holder of legal title, the owner of record or holder of legal title is your agent or representative, you have a sufficient interest in the entity that is the owner of record or holder of legal title Signature authority: you have authority to control the disposition of the assets in the account by direct communication with the financial institution maintaining the account. See instructions for further details. |
| What is reported? | Maximum value of specified foreign financial assets, which include financial accounts with foreign financial institutions and certain other foreign non-account investment assets. | Maximum value of financial accounts maintained by a financial institution physically located in a foreign country. |
| How are maximum account or asset values determined and reported? | Fair market value in US dollars in accord with the Form 8938 instructions for each account and asset reported; convert to US dollars using the end of the taxable year exchange rate and report in US dollars. | Use periodic account statements to determine the maximum value in the currency of the account; convert to US dollars using the end of the calendar year exchange rate and report in US dollars. |
| When is it due? | By income tax due date, including extension, if any. | Received by June 30 (no extensions granted). |
| Where to file? | File with income tax return pursuant to instructions for filing the return. | ALL individuals file electronically through BSA E-Filing System; it is not filed with your Federal Tax Return. |
| Penalties | Up to $10,000 for failure to disclose and an additional $10,000 for each 30 days of non-filing after IRS notice of a failure to disclose, for a potential maximum penalty of $60,000; criminal penalties may also apply. NOTE: If not filed by the due date, the statute is open forever and there is no limit as to when the IRS can perform an audit. | If non-willful, up to $10,000; if willful, up to the greater of $100,000 or 50 percent of account balances; criminal penalties may also apply. |