Now more than ever, American taxpayers are keeping funds in overseas accounts. However, tucking these funds away in other countries comes with additional reporting requirements that you should be aware of. If you meet a certain threshold, federal law mandates that you file a Foreign Bank Account Report (FBAR) each year.
The process of filing an FBAR in Baltimore is straightforward, but even a minor mistake on your form can lead to lasting consequences. There are also penalties in place should you fail to submit the report at all. A dedicated FBAR attorney could answer your questions and help you navigate this process.
Any person in the U.S. with a financial interest in or signature authority over foreign financial accounts that exceed an aggregate value of $10,000 at any point during the calendar year is required to file an FBAR. This includes more than just citizens, as these requirements also apply to lawful residents, companies, and trusts formed under U.S. law.
The requirement applies regardless of whether the foreign accounts generate income, and even in situations where the person with access to the account does not own it but merely has signature authority. These requirements frequently apply to bank accounts as well as investment accounts.
For people living in Baltimore, this means any foreign financial holdings must be considered when determining FBAR filing obligations. Failure to file the FBAR can result in substantial civil or criminal penalties, even if the omission was unintentional.
Just like your tax returns, there is a set deadline for filing an FBAR each year. In fact, the deadline to submit this report falls on Tax Day—April 15th—every year. However, that was not always the case. For years, the FBAR filing deadline was in June instead of April, which was confusing for many taxpayers.
It is important to note that you can seek an extension if you do not file your report on time. In fact, this extension is automatically applied to every taxpayer who does not submit their report by April 15th. In this situation, the deadline is automatically pushed back to October 15th of the same year.
While filing your FBAR in Baltimore is related to your tax obligations, this process is not governed by the IRS. Instead, you will need to deal directly with FinCEN instead of attaching these forms to your tax returns.
Before you file anything, you will need to gather all of the relevant information. You should collect all of the details, like account numbers and details regarding the institution, first. Once you have everything you need, you can file the form online through something known as the BSA E-Filing System.
The stakes are high when it comes to FBAR compliance, and you have the right to seek out legal help every step of the way. An attorney can ensure your filings are accurate, truthful, and submitted on time.
If you have questions about the process of filing an FBAR in Baltimore, now is the right time to ask. An attorney can provide you with your answers and guide you through this process, step by step. Instead of attempting to comply with these requirements on your own, reach out for a confidential consultation with our firm.