FBAR | Forign Bank Account Reporting: June 30th 2012

FBAR | Forign Bank Account Reporting: June 30th 2012

FBAR | Forign Bank Account Reporting Deadline June 30th 2012

If you live in San Francisco Bay Area, you must have heard Sanjiv Gupta CPA talk about FBAR filing.   Sanjiv has been explaining FBAR on TV and Radio for last couple years.  We have talked about FBAR on our blog a lot as well.  None the less, there are many questions still floating around and folks are sill finding confusion about FBAR.

One of the most common question our client ask us is:

Do I need to file FBAR on April 17th along with my tax return?

No – FBAR deadline is June 30th and you need to send it to different address (than your tax return)

I filed FBAR this year but didn’t file for last sevral years. What should I do ?

Well, it depends if you were required to file the FBAR or not.   You should start by consulting with your CPA or Attorney to make sure if you were required to file the FBAR or not.   Once you the answer, you can work on strategy to deal with the situtation.

Can I file past due FBAR ?

Offcourse you can but please do note there are penalties for late filing.

Is there a way to avoid penalties?

May be – you will need a good reason.  You will be required to explain why you didn’t file FBAR in the first place ?

I live in San Jose, Santa Clara, Cupertino, Palo Alto area and didn’t know that I have to file FBAR ?

More than likely this statement won’t work.   You need to work with your accountant or attorney to clearly explain why you didn’t file FBAR.  You may not know about FBAR but you still need to articulate you argument. 

 

According to IRS website, Here are the penalities for not filling the FBAR :

Failure to file FBAR Penalties

There are very heavy penalties for failure to file FBAR.  The following chart highlights the civil and criminal penalties that may be asserted for not complying with the FBAR reporting and recordkeeping requirements.

Violation

Civil Penalties

Criminal Penalties

Comments

Negligent Violation Up to $500 N/A 31 U.S.C.
§ 5321(a)(6)(A)
31 C.F.R. 103.57(h)
Non-Willful Violation Up to $10,000 for each negligent violation N/A 31 U.S.C. § 5321(a)(5)(B)
Pattern of Negligent Activity In addition to penalty under § 5321(a)(6)(A)
with respect to any such violation, not more than $50,000
N/A 31 U.S.C. 5321(a)(6)(B)
Willful – Failure to File FBAR or retain records of account Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. Up to $250,000 or 5 years or both 31 U.S.C. § 5321(a)(5)(C)
31 U.S.C. § 5322(a)
and 31 C.F.R. § 103.59(b) for criminal.
The penalty applies to all U.S. persons.
Willful – Failure to File FBAR or retain records of account while violating certain other laws Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. Up to $500,000 or 10 years or both 31 U.S.C. § 5322(b) and 31 C.F.R. § 103.59(c) for criminal
The penalty applies to all U.S. persons.
Knowingly and Willfully Filing False FBAR Up to the greater of $100,000, or 50 percent of the amount in the account at the time of the violation. $10,000 or 5 years or both 18 U.S.C. § 1001,
31 C.F.R. § 103.59(d) for criminal. The penalty applies to all U.S. persons.
Civil and Criminal Penalties may be imposed together. 31 U.S.C. § 5321(d).

 Want to Learn more about FBAR | Forign Bank Account Reporting

Hear are some links to other FBAR discussion on Sanjivcpa.com

Do office of Sanjiv Gupta CPA files FBAR | Forign Bank Account Reporting ?

Yes | We help both businesses and individual with FBAR filing.  You can call our office at 510-825-7563 to make an appoinment. 

Do you only offer FBAR for Fremont Residents ?

We have clients from across the globe filing FBAR using our services.   However, most of our customers filing FBAR are of Indian original and usually located in Fremont, Hayward, Santa Clara, Sunnyvale, Palo Alto, Cupertino, San Jose.  We serve clients from San Francisco Bay Area.

Are you open on weekends ?

Yes, we are open atleast on Saturday.

I am not sure if I need to file FBAR, Can you help ?

It is good idea to take an appointment to understand if you should file he FBAR or not.  As you know, consequences of not filing (if required) can be painfull.  Sanjiv Gupta CPA can sit down and learn more about your situtation and advise if you should or you should not file FBAR ?

I live in San Francisco Bay Area but can not come to your office ?

We offer appointment by phone and video conferencing.  Give us a call and we will try to find a solution for you.

Sanjiv subscriber

  • Guest

    Hello! I completed filing taxes for 2011, but
    did not know that I had to declare foreign bank accounts I hold. I was under
    the impression that only US Citizens/ permanent residents need to do this. One
    of my relatives recommended I consult you on this. I am not located in CA.
    Would you be able to advise me on this and help me file the correct declaration
    forms if necessary.