FBAR stands for “Foreign Bank Account Report”, refers to Form 114, Report of Foreign Bank and Financial Accounts, that must be filed with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Treasury Department. U.S. citizens are required to file FBARs annually if they have a financial interest in or signature of other authority over foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. It must be filed by April 15 following the calendar year reported. However, a six-month extension is allowed.
The Foreign Account Tax Compliance Act (FATCA) is a tax law that compels U.S. citizens at home and abroad to file annual reports on any foreign account holdings. FATCA was endorsed in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act to promote transparency in the global financial services sector. Penalties are imposed on U.S. residents who do not report their foreign account holdings and assets that exceed $50,000 in value in any given year.
