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What do I need to know about the FBAR filing requirements as a startup with international ties?

Vanessa Kruze, CPA, is a leading expert in startup taxes and tax compliance. Her team at Kruze Consulting has filed thousands of tax returns for companies that have raised billions in VC funding, and her work has been diligenced by leading VCs, attorneys, and M&A teams at the largest technology companies.
Vanessa Kruze, a highly-experienced CPA, brings valuable tax expertise to startups, drawing from her rich background at Deloitte Tax and as a financial controller for a $20 million startup. As the leader of Kruze Consulting, recognized multiple times in the Inc 5000 list, she specializes in navigating the complex tax landscape for startups. Her firm is known for delivering precise and strategic tax solutions, delivering tax credits utilizing advanced tools to ensure compliance and optimize tax benefits for startups throughout the United States.

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Foreign Bank Account Reporting

If you have a startup with an international parent or subsidiary company, Financial Bank Account Reporting is an important filing that can’t be missed.

What is the FBAR filing?

  • FBAR = Foreign Bank Account Reporting
  • It’s required by law
  • Penalties for unintentional failure to file (or incomplete filing) start at a minimum of $12,000+ per account per year.
  • Penalties for intentional failure to file are the greater of $124,000+ or 50% of the balance of the bank account, per account per year.

Who must file?

If the company, or any of the officers of the company, have either a financial interest in or signature authority over a foreign financial account with more than $10,000 at any point in the year, there are annual reporting requirements with very steep penalties if you fail to report.

Where can I file?

You can file your FBAR online through the BSA E-Filing System.

When is the due date?

April 15th of every year.

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