If you have a financial interest in or signature authority over a foreign financial account exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Financial Crimes Enforcement Network (FinCEN) by filing FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR).

Specifically, for 2016, FinCEN Report 114 is required to be filed if during the year—

1. You had a financial interest in or signature authority over at least one foreign financial account (which can be anything from a securities, brokerage, mutual fund, savings, demand, checking, deposit, or time deposit account to a commodity futures or options, and a whole life insurance or a cash value annuity policy) and;

2. The aggregate value of all such foreign financial accounts exceeded $10,000 at any time during 2016.

The FBAR filing deadline is April 15, with a six-month extension to October 15 allowed. Earlier this year, FinCEN announced that it will grant filers an automatic extension to October 15 each year—a specific request for extension isn’t required. Therefore, the extended due date for 2016 FBAR filings is 10/16/17 (because October 15 falls on a Sunday). The penalty for failing to file Form 114 is substantial—up to $10,000 per violation (or the greater of $100,000 or 50% of the balance in an account if the failure is willful).

FinCEN Report 114 must be filed electronically. To file it yourself, go to bsaefiling.fincen.treas.gov/main.html. Once there, click on “Become a BSA E-Filer” and then click on “File an Individual FBAR” on the next page and complete the form.

Please give us a call if you have any questions or would like us to prepare and file FinCEN Report 114 for you.