FBAR & FATCA Processing

If you hold an account in any foreign bank, you must report it annually to the U.S. Treasury Department. The nature of these accounts can vary from one institution to another. To make things easier for our clients, we have listed certain types of accounts, such as mutual funds, brokerage accounts, and checking or savings accounts, along with other financial assets. Under the Bank Secrecy Act, U.S. residents are required to file a Foreign Bank Account Report (FBAR). If your total balance across foreign accounts is at least $10,000, you must also file FinCEN Form 114.

In all honesty, filing FinCEN Form 114 is compulsory for every U.S. citizen with a foreign bank account. Failure to comply can lead to harsh penalties, which may even include criminal charges.

Be aware that besides FinCEN Form 114, you will also need to file FATCA's Form 8938. However, there are specific criteria that you must satisfy in order to be required to file the FATCA form.

• As a U.S. resident filing taxes as an individual, you must file this form if your foreign assets are valued at over $50,000 on the last day of the year. You will also need to file if the value of your assets reached $75,000 or more at any time during the financial year.
• If you're a U.S. expatriate living overseas and filing taxes as a single individual, you must file this form if your foreign assets exceed $200,000 in value. Furthermore, if your assets value reaches $300,000 at any time during the year, you are also required to file.
• If you reside in the U.S. and are filing a joint return with your spouse, you need to file this form if your foreign bank assets are valued at over $100,000 at the end of the financial year.
• If you're a U.S. expatriate residing overseas and filing jointly with your spouse, you must file if your foreign assets have an aggregate value of more than $400,000, or if their value has at any time reached $600,000.