Understanding FinCEN Form 114 (FBAR): A Guide for U.S. Citizens and Residents
FinCEN Form 114 , also known as the FBAR (Foreign Bank Account Report), is a key form required by the U.S. Department of the Treasury. If you are a U.S. person who has foreign bank accounts, understanding the FBAR is important for staying compliant with U.S. tax laws. This article will help you understand what the FBAR is, who needs to file it, and how to do so in a simple and straightforward manner. What is FinCEN Form 114 (FBAR)? The FBAR is a form used to report foreign bank accounts to the U.S. Department of the Treasury. U.S. persons are required to file this form if they have an interest in or signature authority over one or more financial accounts located outside of the United States, and the aggregate value of those accounts exceeds $10,000 at any point during the calendar year. The purpose of the FBAR is to prevent and detect money laundering and other financial crimes. It is important to note that the FBAR is separate from your tax return, and failure to file i...