I didn’t file FBAR and now owe $10,000 in penalties!
If you are
- a US citizen, a Green card holder, a US organization
- have an interest in a foreign account, foreign entity, have several accounts, have signature authority, foreign stock or securities held in a foreign bank, indirect interest in foreign assets through an entity, foreign mutual funds, foreign-issued life insurance policy r annuity, and more.
- balance over $10,000 anytime during the tax year.
Not filing FBAR may result in civil monetary penalties:
- non-willful, up to $10,000,
- willful, up to the greater of $100,000 or 50 percent of account balances,
- criminal penalties may also apply.
Sources: Comparison of Form 8938 and FBAR Requirements
What should you do if you missed it?
You may file your FBAR information via Delinquent FBAR Submission Procedures.
As per the IRS website, “The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted”.
Source: Delinquent FBAR Submission Procedures
