FBAR (Foreign Bank Account Report)

FBAR refers to FinCEN Form 114, which US persons must file annually if they hold financial interests in, or signature authority over, foreign bank accounts that in aggregate exceed USD 10,000 at any point during the calendar year. It is filed separately from the federal income tax return, with FBAR submissions made to the Financial Crimes Enforcement Network rather than the IRS. Penalties for wilful non-compliance can reach the greater of USD 100,000 or 50% of the account balance per violation. FBAR requirements apply to citizens, residents, and certain other US persons regardless of where they live.