New FBAR Form 114 for Mandatory Electronic Filing

FinCEN Form 114 has replaced the former Report of Foreign Bank and Financial Account (FBAR), Form TD F 90-22.1. U.S. individuals (citizens and tax residents) and businesses with a financial interest in, signature authority, or the power to direct activities over a foreign financial account, including a bank account, brokerage account, mutual fund, etc. are required to file an annual FBAR. Electronic filing is mandatory for all FBARs filed on or after July 1, 2013 including late FBARs, and the filing is done through a website maintained by the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN).

An FBAR is required only if the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. The reports must be completed and received by June 30 for the preceding calendar year.

Individuals and businesses, required to file FBARs, can register to use the new system directly or use a third party to prepare and submit FBARs on their behalf. If a third party is used to prepare and submit FBARs, authorization must be provided by the Taxpayer on FinCEN Form 114a, granting the third party authority to do so.

Please contact Martini, Iosue & Akpovi by phone at (818) 789-1179 if you have questions or want more information.

 

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