What do I need to know about the FBAR filing requirements as a startup with international ties?
Vanessa Kruze
Founder, CPA
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.
Also read:
Recent questions
- As a CPA, what advice would you give to a university student studying accounting and finance?
- If Quick Books and Xero are so easy to use, do I really need an accountant for my business?
- How much should founders pay themselves after raising seed funding? What would be reasonable to investors?
- Who are good bookkeepers in Mountain View CA?
- How do I account for a startup that has a live / workspace? What are the tax implications for a startup that has a live / workspace?
Top viewed questions
- What happens if the IRS audits me and I do not have the receipt for an expense (assuming it was a legitimate expense)?
- What does a US based company need to do to comply with IRS regulations in paying foreign contractors?
- What are some hacks for reducing your burn rate if you are a startup?
- How can I become a good accountant?
- How should convertible note financing be handled on the balance sheet?