Detailed information about FBAR

If you are a US resident, you must have known about the rules of paying tax in your country. Though people have abundant knowledge of paying tax most of them are unaware of the FBAR facts. Well, FBAR is foreign bank account report. If you are a resident of US and you have a bank balance in countries other than the US and the cumulative money is worth more than $10000 you have to file FBAR according to the US rules of paying tax. This rule has been made for those who have multiple accounts in the other countries outside the US, and the amount is huge. Some might have those accounts only for the business and the other purposes. But if you have intentions to keep money outside of the country just to deceive the revenue board of the country and not paying the tax properly, FBAR is just for you.

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Whether you know about it or don’t, you have to pay it. Otherwise, you will be penalized for not showing the FBAR report. You required filing the FBAR in time. If you are failed to file the FBAR report, you might get the charges of a criminal case or some penalties. Sometimes the amount of penalties are higher than the money you kept in the other bank accounts if you miss filing the FBAR for few consecutive years. However, the penalties sometimes exempted if the revenue finds the situation has occurred due to your ignorance of the fact.

However, you shouldn’t file the FBAR just for your foreign bank accounts and bank balances. You also have to file it if you have assets like home which is sold in exchange for a share, share capital, debentures, the power of attorneys, etc. in your name. There are certain rule and regulations of filing the FBAR. You have to study to know about all of them well, or you can hire a lawyer in your favor, who will do everything according to your requirements or assets.  You have to file the report of previous year’s bank balances and assets in the recent year. This year the taxpayers have to submit their tax return file by 15 April. The time can be extended for six months more. But you have to file the FBAR reports by June 30 and the date can’t be extended anyway. If you miss FBAR filing date 2017 by June 30, this year, you have to pay penalties or late fee for not submitting the reports in due time.

Now the question is how you will file the FBAR. You can file it manually by visiting the office of IRS, or you can hire a tax attorney to do all the formalities. You can also submit the returns through the electronic medium. You just have to log in to the IRS website, and you can fill up the form with the necessary information. This is the most easiest and convenient way of filing FBAR reports.

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