What is the FBAR?
FBAR stands for "Foreign Bank Account Report," a report required by the U.S. Treasury Department for American citizens and residents with financial interests in or signature authority over foreign financial accounts if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. FBAR has filed annually with the Financial Crimes Enforcement Network (FinCEN).
If you did not file an FBAR and are required to, you may face penalties. The penalties for not filing an FBAR can be substantial and include fines of up to $10,000 per violation for non-willful violations and up to $100,000 or 50% of the balance in the account, whichever is greater, for willful violations. In extreme cases, the U.S. Treasury may also bring criminal charges against individuals who knowingly and willingly fail to file an FBAR. In addition, failing to file an FBAR may result in the IRS disallowing certain deductions and credits and may impact your ability to receive certain foreign-source income.
If you did not file an FBAR and are required to, you should take immediate action to become compliant. You can do this by:
Filing all missing FBARs as soon as possible.
Submitting a statement explaining why the FBARs were not filed on time.
Paying any applicable penalties or fines.
You should seek professional assistance by reaching out to the Lamarre Law Group P.A., which specializes in FBAR compliance, to help you navigate the process and minimize potential penalties.