FinCEN Form 114, commonly called the FBAR, is an annual foreign financial account report filed electronically with the Financial Crimes Enforcement Network. It is separate from the federal income tax return.
Who May Need to File an FBAR?
A U.S. person generally must consider an FBAR when the aggregate maximum value of reportable foreign financial accounts exceeds the applicable reporting threshold at any time during the calendar year.
The FBAR Uses an Aggregate Account Test
The filing test generally looks at the combined maximum value of reportable foreign accounts rather than testing each account separately. Multiple accounts can therefore create an FBAR filing requirement even when no single account exceeds the reporting threshold by itself.
Examples of Potentially Reportable Foreign Accounts
- Foreign bank accounts.
- Foreign brokerage or securities accounts.
- Certain other financial accounts maintained outside the United States.
Whether a particular account is reportable depends on the account type, ownership and authority over the account.
FBAR Filing Is Separate From Form 1040
The FBAR is filed electronically with FinCEN rather than attached to Form 1040. Separate federal income-tax reporting may also apply to foreign assets or foreign income, so filing an FBAR does not by itself satisfy every possible foreign reporting obligation.
Timely and Delinquent FBARs
Our listed fixed-fee FBAR service covers a timely, straightforward filing within the stated service scope. Delinquent FBARs, reasonable-cause submissions and more complex foreign reporting require separate review.
Need FBAR Preparation?
Review CPA of Denver’s FBAR filing service.
For more detail about the reporting threshold, see How the FBAR Aggregate Threshold Works.