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What You Need to Know About the Foreign Banks and Accounts Reporting Requirements

Any U.S. person with a financial interest in or signature authority over a foreign bank account must file a Form 114, Report of Foreign Bank and Financial Accounts (FBAR), if the aggregate value of all foreign accounts at any time during the calendar year exceeds $10,000.

While the FBAR is an information return only and does not impose any additional tax, there can be significant civil and criminal penalties for failure to file.

The purpose of FBAR is to enable the federal government to identify persons or entities that use offshore financial institutions to circumvent U.S. tax law and to help identify unreported income earned or maintained in foreign accounts.

For more information, please read the entire advisory.