Right around the corner is the deadline to file Form TD F 90-22.1, which is the Report of Foreign Bank and Financial Accounts (FBAR).  This form is used to report a financial interest in, or signature authority over, a foreign financial account (including bank accounts, securities, or other types of financial accounts).  With a June 30th deadline approaching and stringent penalties for not filing, it is very important that anyone who falls within the category to file do so.  Please note that the U.S. Treasury must physically receive the FBAR by the filing deadline of June 30th and that a postmark on June 30th is not sufficient.   So be sure to file as early as possible.

The requirements to file consist of any United States person that has a financial interest or signature authority over an account outside of the U.S. which has an aggregate value that exceeds $10,000 at any time during the calendar year.  This is not limited to individuals but also an obligation for legal entities such as a limited liability company, corporation, partnership, trust and estate.

A person who is required to file an FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000.  A person who willfully fails to report an account or account identifying information may be subject to a civil monetary penalty equal to the greater of $100,000 or 50 percent of the balance in the account at the time of the violation. 

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If you have any questions regarding this issue, please contact the DZH Phillips Tax Department at (415) 781-2500 or email cpas@dzhphillips.com.