FBAR Compliance

Report of Foreign Bank and Financial Account (FBAR) is a form that IRS requires tax payers to file and comply with the requirements for reporting FBAR to Tax authorities in United States. FBAR compliance is obligatory for U.S. citizens, resident aliens and certain nonresident aliens who have a financial interest in or signature authority or other authority over any "financial accounts"(including bank account, brokerage account, mutual fund, etc.,) in a foreign country are required to make a separate filing (NO WAY INTERRELATED TO TAX RETURN AND ITS DUE DATE) if the aggregate value of these accounts exceeded $10,000 at anytime during a calendar year.

The mechanism for reporting the FBAR information is filing Form TD F 90-22.1 (also known as FBAR Form). This is a direct result of the IRS determining that there is a significant amount of non-compliance in this area and they have therefore indicated that they will be stepping up enforcement of potentially considerable penalties related to non- compliance/filing.