charankanya on January 17th, 2012

An FBAR is the Report of Foreign Bank and Financial Accounts Form TD F 90-22.1 from the Dept. of Treasury (US).

Who must file the FBAR?

If you are a “person of the United States, and if you have “financial interest in, signature authority or other authority over any financial account(s) in a foreign country” and the “aggregate value of these account(s) exceeds $10,000 at any time during the calendar year” you need to file the FBAR.

What happens if you don’t?

If you meet the criteria for filing the FBAR and you don’t file it, you can face HUGE penalties as well as jail.  Depending on the violation, you can face Civil Penalties and/or Criminal Penalties.  Both can be imposed together.

Civil Penalties can run up to the greater of  $100,000 ro 50% of the amount in the account at the time of violation.

Criminal Penalties can run up to $500,000 or 10 years in jail or both.

For more information see Should you file FBAR for the first time?

For basic rules of FBAR filings, see Are you getting enough FBAR?

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