SOURCE: US Tax Professionals

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March 16, 2016 15:35 ET

US Tax Specialist Warns About Penalties for Failing to Submit FBAR Form to FinCEN

US Tax Specialist Outlines the Requirements of the FBAR Form and the Penalties for Not Submitting in Latest Online Article

VANCOUVER, BC--(Marketwired - March 16, 2016) -  US Tax Professionals, a Vancouver accounting firm that specializes in cross border taxation and compliance, has published a blog useful for anyone who wants to understand more about the FBAR, or Report of Foreign Bank and Financial Accounts. For more information, go to: http://www.us-taxprofessionals.com/wordpress/

US citizens and resident aliens are required to report all worldwide income, including anything from foreign trusts and bank and securities accounts. In most cases, taxpayers will only need to fill out and attach Form 1040, Schedule B, Interest and Ordinary Dividends with their tax return.

Only certain taxpayers with foreign accounts must also file Form 114 (FBAR) with FinCEN, a bureau of the Treasury Department. In general, the requirement for filing Form 114 applies to anyone who had an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during the previous calendar year.

This is not a tax form and cannot be filed with the IRS. It must be filed electronically and is only available online through the BSA e-filing system website.

Penalties for failing to file Form 114 with FinCEN are:

(1) if non-willful, up to $10,000

(2) if willful, up to the greater of $100,000 or 50% of account balance. Criminal penalties may also apply.

It is important to note that Form 114 should not be attached to your US Federal Form 1040. Instead, it must be filed electronically, no later than June 30th following the calendar year for which it applies using the BSA e-filing system.

US expats filing taxes from Canada should find a reputable accountant knowledgeable in cross border taxation. These professionals will be able to provide ideas and advice on how to minimize taxes and submit all required paperwork, including Form 114 if applicable.

About the Company

US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.

For more information, visit http://www.us-taxprofessionals.com/ or call (604) 949-1559.

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