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Foreign Bank and Financial Accounts Reporting rule, DO YOU KNOW?

R

Rachel Ng

New Member
FBAR stands for Foreign Bank and Financial Accounts Reporting rule. It is a part of the U.S financial regulation to verify whether the money in your foreign financial account is legitimate. Failing to file an FBAR when required to do so means facing civil monetary penalties, or even criminal penalties based on how you violate it. Here is the amount of penalty for each type of FBAR violation:
Negligent Violation The current maximum amount of penalty: $1,078
Criminal Penalties: none Non-Willful Violation

The current maximum amount of penalty: $12,459 for each violation
Criminal Penalties: none Pattern Of Non-Negligent Violation

The current maximum amount of penalty: Up to $83,864
Criminal Penalties: none Willful Violation – failure to file an FBAR or retain records of financial account

The current maximum amount of penalty: $124,558, or 50% of the balance in the foreign account at the time of the violation
Criminal Penalties: $250,000 or 5 years or both Willful Violation – failure to file an FBAR or retain records of financial account while violating certain other laws

The current maximum amount of penalty: $100,000, or 50% of the balance in the foreign account at the time of the violation
Criminal Penalties: $500,000 maximum or 10 years or both

Understanding the fundamental requirements of FBAR filing will help you have a clean tax season and avoid unwanted penalties from the U.S government if failing to file one. This post is just a reference for those who want to delve into the Foreign Bank and Financial Accounts Reporting rule. This post is written from my own experience, how is yours?
 
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