The deadline for Foreign Bank Account Reporting is June 30. The Report of Foreign Bank and Financial Account is IRS TD F 90-22.1 (.pdf).
Any United States person who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year must file the report. An FBAR must be filed whether or not the foreign account generates any income.
The IRS has engaged in a large-scale initiative to seek out taxpayers with undisclosed accounts overseas. While in the past the prosecution of those failing to comply with the Foreign Bank Account Reports reporting requirements have been rare, following enactment of the Patriot Act of 2001, the IRS appears ready, willing and able to crack down on the non-compliant.
The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. There is no extension available for filing the FBAR.
There are a few exceptions to the filing requirement.
An officer or employee of a bank which is currently examined by Federal bank supervisory agencies for soundness and safety need not report that he has signature or other authority over a foreign bank, securities or other financial account maintained by the bank, if the officer or employee has NO personal financial interest in the account.
An officer or employee of a domestic corporation whose equity securities are listed upon any United States national securities exchange or which has assets exceeding $10 million and has 500 or more shareholders of record need not file such a report concerning signature or other authority over a foreign financial account of the corporation, if he has NO personal financial interest in the account and he has been advised in writing by the chief financial officer or similar responsible officer of the corporation that the corporation has filed a current report, which includes that account.
An officer or employee of a domestic subsidiary of such a domestic corporation need not file this report concerning signature or other authority over the foreign financial account if the domestic parent meets the above requirements, he has no personal financial interest in the account, and he has been advised in writing by the responsible officer of the parent that the subsidiary has filed a current report which includes that account.
An officer or employee of a foreign subsidiary more than 50% owned by such a domestic corporation need not file this report concerning signature or other authority over the foreign financial account if the employee or officer has no personal financial interest in the account, and he has been advised in writing by the responsible officer of the parent that the parent has filed a current report which includes that account.
Accounts in U.S. military banking facilities, operated by a United States financial institution to serve U.S. Government installations abroad, are not considered as accounts in a foreign country.
The willful failure to disclose foreign accounts, or to report all of the information required on an FBAR, can result in severe civil and criminal penalties. The civil penalty amount is limited to the greater of $25,000 or the balance in the account at the time of violation, up to a maximum of $100,000 per violation. Criminal violations of the FBAR rules can result in a fine of not more than $ 250,000 or 5 years in prison or both.
Section 5314 of the Bank Secrecy Act of 1970 authorizes the Secretary of the Treasury to require residents or citizens of the United States to keep records and/or file reports concerning transactions with any foreign agency. (31 U.S.C. §5314) The provisions resulted from concern that foreign financial institutions located in jurisdictions having laws of secrecy with respect to bank activity were being extensively used to violate or evade domestic criminal tax and regulatory requirements.