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