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The Internal Revenue Service reminds U.S. citizens, resident aliens, and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is still April 15, 2021.
The extension of the federal income tax filing due date and other tax deadlines for individuals to May 17, 2021, does not affect the FBAR requirement.
Who Must Report
The Bank Secrecy Act requires U.S. persons to file an FBAR if they have both:
- Financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund, or other financial accounts in a foreign country.
- The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.
Because of this threshold, the IRS encourages U.S. persons or entities with foreign accounts, even relatively small ones, to check if this filing requirement applies to them.
A U.S. person is a citizen or resident of the United States or any domestic legal entity such as a partnership, corporation, limited liability company, estate, or trust.
Penalties for Failure to File an FBAR
Those who don’t file an FBAR when required may be subject to significant civil and criminal penalties resulting in a fine and prison.
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