FBAR & FATCA Filing Services
If you’re a U.S. citizen, resident, or a foreign national with financial ties to the U.S., understanding your filing obligations for FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act) is crucial. These regulations are designed to ensure U.S. taxpayers report their foreign financial accounts and comply with tax laws. At QuickTaxFilingService, we help individuals and businesses navigate these complex reporting requirements, ensuring compliance and avoiding potential penalties.
What is FBAR (Foreign Bank Account Report)?
FBAR, officially known as FinCEN Form 114, is a requirement for U.S. persons to report their foreign bank accounts, financial accounts, and other financial interests to the U.S. Treasury Department if the aggregate value of those accounts exceeds $10,000 at any point during the calendar year. The goal is to detect and prevent tax evasion and money laundering.
FBAR Filing Requirements:
- U.S. persons (citizens, residents, and entities) must file an FBAR if they have a financial interest or signature authority over one or more foreign accounts.
- The total value of these accounts must exceed $10,000 at any point during the calendar year.
- FBAR filing is separate from tax filing and must be submitted online through the FinCEN website (not the IRS).
What is FATCA (Foreign Account Tax Compliance Act)?
FATCA, or Foreign Account Tax Compliance Act, was enacted in 2010 to combat offshore tax evasion by U.S. taxpayers. FATCA requires U.S. citizens and residents to report foreign financial accounts and assets on IRS Form 8938, if they meet certain thresholds. FATCA applies to individuals with foreign financial assets and is designed to ensure that these assets are reported for U.S. tax purposes.
FATCA Filing Requirements:
- U.S. taxpayers must report specified foreign financial assets such as bank accounts, investment accounts, and interests in foreign entities.
- Form 8938 is filed as part of your annual tax return (Form 1040).
- Reporting thresholds vary depending on your filing status and whether you live inside or outside the U.S. (for example, the threshold for married taxpayers living abroad is $400,000 in foreign assets, while for those residing in the U.S., it’s $50,000).
FBAR & FATCA: Key Differences
- FBAR (FinCEN Form 114): Filed with the U.S. Treasury Department; focuses specifically on foreign bank accounts and financial accounts.
- FATCA (IRS Form 8938): Filed with the IRS as part of your annual tax return; covers a broader range of foreign assets beyond bank accounts, including investment portfolios, foreign real estate, and more.
Why Filing FBAR & FATCA is Crucial
Failing to report foreign bank accounts and financial assets can lead to severe penalties, including:
- FBAR Penalties: Non-willful violations can result in penalties up to $10,000 per violation, while willful violations can lead to penalties of up to $100,000 or 50% of the account balance.
- FATCA Penalties: Failure to report foreign assets under FATCA can result in a $10,000 penalty, with additional penalties for continued non-filing.
How QuickTaxFilingService Can Help
- Expert Guidance: We ensure you understand the filing requirements for both FBAR and FATCA, helping you meet the deadlines and avoid costly mistakes.
- Accurate Filing: Our team will help you complete the FBAR (FinCEN Form 114) and FATCA (IRS Form 8938) filings accurately and on time, so you can stay compliant.
- Peace of Mind: With our support, you can rest assured that your foreign accounts and assets are properly reported to the IRS and the U.S. Treasury Department, reducing the risk of penalties or audits.
At QuickTaxFilingService, we are committed to providing reliable and thorough assistance for your FBAR and FATCA filings. If you have foreign financial accounts or assets, it’s important to stay compliant with these regulations. Let us help you navigate these reporting requirements efficiently and correctly.