Wednesday, May 13, 2009
Foreign Financial Account Reporting (FBAR – TD F 90-22.1)
“United States persons”, and foreign persons that were located in and doing business in the United States during the calendar year, must report to the United States Treasury their foreign financial accounts if the total value of all such accounts on any day of the year exceeded $10,000. The report, Form TD F 90-22.1, also known as FBAR, must be mailed before July 1 of the following year and no extension of this deadline is possible. “United States persons” are U.S. citizens and residents, including partnerships, LLC’s, corporations, estates, and trusts. Even individuals who are not U.S. residents under immigration law may be considered residents because of the number of days they spent in the U.S. in the last 3 years. An account is foreign based on the geographical location of the account, not the nationality of the financial institution; exceptions exist for US military banking facilities. The penalty for failure to file the report on time is $10,000. FBAR isn't an income tax return, and it shouldn't be mailed with any income tax return.