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 the last couple of 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 questions 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 a different address (than your tax return)
I filed FBAR this year but didn’t file for the last several 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 the strategy to deal with the situation.
Can I file past due FBAR?
Of course, you can but please do note there are penalties for late filing.
Is there a way to avoid penalties?
Maybe – 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 your argument.
According to the IRS website, Here are the penalties for not filing the FBAR :
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 the 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 the 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). | |||
Here are some links to other FBAR discussion on Sanjivcpa.com
Do office of Sanjiv Gupta CPA files FBAR | Foreign Bank Account Reporting?
Yes | We help both businesses and individuals with FBAR filing. You can call our office at 510-825-7563 to make an appointment.
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 origin and usually located in Fremont, Hayward, Santa Clara, Sunnyvale, Palo Alto, Cupertino, San Jose. We serve clients from the San Francisco Bay Area.
Are you open on weekends?
Yes, we are open to atleast on Saturday.
I am not sure if I need to file FBAR, Can you help?
It is a good idea to make an appointment to understand if you should file the FBAR or not. As you know, the consequences of not filing (if required) can be painful. Sanjiv Gupta CPA can sit down and learn more about your situation and advise if you should or you should not file FBAR?
I live in the San Francisco Bay Area but can not come to your office?
We offer an appointment by phone and video conferencing. Give us a call and we will try to find a solution for you.
