FBAR (Foreign Bank Account Reporting) FinCEN Form 114
The Internal Revenue Service recently updated its FBAR Reference Guide wherein some clarifications were provided:
A US person is not just an individual. It includes corporations, partnerships, limited liability companies and estates.
A financial account includes checking and savings accounts, securities accounts, commodity futures or option accounts, mutual or pooled funds, and more.
Cryptocurrency reporting is not yet required but is under consideration.
Maximum account value is calculated on any day of the year not the last day.
Many examples were added to clarify reporting requirements for foreign accounts with financial interest and those only with signature authority.
For joint accounts, the entire value of the account is reportable by the owners.
Foreign holdings embedded in US retirement accounts are not reportable.
FBAR filing due date have the same rules as Federal individual income tax returns.
FBAR penalties are assessed on violations “per account per year or per-form per year.”
June 7, 2022
Cayman Islands Office
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