Your Guide to the FBAR Deadline 2024 and Compliance
U.S. citizens with financial interests in foreign accounts must also file an FBAR—the Foreign Bank Account Report. Here’s everything you need to know about the FBAR Deadline for 2024, staying compliant, and how Dimov CPA can assist.
When Is the 2024 Deadline to File an FBAR?
FBAR deadlines run along the same lines as individual federal tax returns, with the 2024 FBAR due April 15 and an automatic extension to October 15 for those who miss the first deadline. It is filed electronically with the Financial Crimes Enforcement Network (FinCEN) on Form 114. So they are all about transparency in offshore accounts to avoid people evading the tax.
| FBAR Deadlines for 2024 | Description |
| April 15, 2024 | Initial FBAR filing deadline. |
| October 15, 2024 | Extended deadline (automatic). |
Note: October 15, 2024 is an extended deadline (the time of year when we automatically grant extensions).
Who Needs to File an FBAR?
You need to file an FBAR if:
- You are a U.S. person (which includes citizens, residents, trusts & estates, domestic entities).
- Have signature authority or other authority over foreign financial accounts in which you have a financial interest.
- The combined total of these accounts is greater than $10,000 at any time during the calendar year.
This does include different types of accounts like:
- Bank accounts (current, deposits, time deposits)
- Brokerage accounts
- Funds similar to mutual funds or otherwise
How to File FBAR for 2024
FBAR is classified as the Foreign Bank Account Report and you file it using Form 114 within the FinCEN BSA E-Filing System. Essential data that you will require includes:
- Your personal information (name, SSN or TIN, and address),
- The name and address of the foreign bank or other financial institution.
- Account type and max value for the year
- It can get tricky, particularly if you have several accounts. A little help from the experts can make this process easier.
Top FBAR Filing Mistakes You Should Avoid
- Missing Deadline: File by April 15 or make use of automatic extension until the fifteenth of October.
- Incorrect Account Valuation: The maximum value of your accounts is a pretty easy calculation.
- Overlooking Signature Authority: Accounts that have signature authority must also be disclosed.
- Failing to Report All Accounts: Include dormant or jointly-held accounts if the total value exceeds $10,000.
What Happens if You Don’t Meet the FBAR Deadline
If the FBAR deadline is missed, failure can result in high penalties that depend on whether it is classified as willful or non-willful:
- Non-Willful Violations: If you failed to file and are found to be a non-willful violator, fines can be up to $10,000 per violation. Penalties, though, may be abated where reasonable cause for the failure can be shown.
- Willful Violations: When you are found to be willfully failing to file, the penalties become harsher. The penalty could be $100,000 or half of the account balances at the time of violation, whichever is greater. If it persists, they may even face criminal charges to serve time for their willful violation.
So even if, say you fail to file FBARs year after year, the penalties can stack and lead to an exponentially higher bill at the end of your compliance journey.
Our Services
Dimov CPA has a variety of services to assist you with the FBAR Deadline 2024, such as;
- Eligibility Evaluation: If you are obligated to submit FBAR.
- Account Review: Calculating the aggregate value of foreign accounts.
- Filing Support: Completing and submitting FinCEN Form 114.
- Penalty Relief: Helping to negotiate reduced penalties for missed prior deadlines.
Summary
The FBAR Deadline for 2024 is April 15, with an automatic extension to October 15 if needed. Staying compliant is crucial to avoid severe penalties. Dimov CPA provides comprehensive services, from eligibility assessments to filing and penalty mitigation, ensuring a stress-free filing experience. Contact us today for professional assistance.
FAQs
What are the consequences for not filing an FBAR?
There is a whole FBAR penalty regime if you miss the deadline. There is an automatic extension until October 15, 2024, however ignoring this extended deadline can lead to hefty penalties.
Are foreign accounts reportable, regardless of their type?
Yes, you are required to report all foreign accounts if the total aggregate value exceeds $10,000 at any time during the calendar year; signature authority over a foreign account also requires reporting.
Can spouses file FBAR together?
Yes, spouses filing jointly for their FBAR can file joint FBAR (Tax Pages). But only if ALL accounts are needed to file via the Tax Page. If the individual spouse has individual accounts, they must file separately.
What information do you need to file FBAR?
You will need information including your name, Social Security Number or Taxpayer Identification Number, the foreign bank’s name and address, the account type and maximum value during the year.
What is the penalty for failure to file FBAR non-willful?
They can be slapped with a penalty of up to $10,000 per violation — for non-willful violations — unless there is reasonable cause for the failure.
Do I have to file an FBAR if I merely hold signature authority over an account?
Yes, you have signature authority over a foreign account fbars must be filed if the aggregate value of all accounts exceeds $10,000 at any time during the year.
