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What are the penalties for failing to report FBAR?

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RachelNg

New member
FBAR stands for Foreign Bank and Financial Accounts Reporting rule. It is a part of the U.S financial regulation to verify whether the money in your foreign financial account is legitimate.
Failing to file an FBAR when required to do so means facing civil monetary penalties, or even criminal penalties based on how you violate it.

Here is the amount of penalty for each type of FBAR violation:

Negligent Violation
  • The current maximum amount of penalty: $1,078
  • Criminal Penalties: none
Non-Willful Violation
  • The current maximum amount of penalty: $12,459 for each violation
  • Criminal Penalties: none
Pattern Of Non-Negligent Violation
  • The current maximum amount of penalty: Up to $83,864
  • Criminal Penalties: none
Willful Violation – failure to file an FBAR or retain records of financial account
  • The current maximum amount of penalty: $124,558, or 50% of the balance in the foreign account at the time of the violation
  • Criminal Penalties: $250,000 or 5 years or both
Willful Violation – failure to file an FBAR or retain records of financial account while violating certain other laws
  • The current maximum amount of penalty: $100,000, or 50% of the balance in the foreign account at the time of the violation
  • Criminal Penalties: $500,000 maximum or 10 years or both
Understanding the fundamental requirements of FBAR filing will help you have a clean tax season and avoid unwanted penalties from the U.S government if failing to file one. This post is just a reference for those who want to delve into the Foreign Bank and Financial Accounts Reporting rule. This post is written from my own experience, how is yours?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Thanks,


This obviously only applies to those carrying the mark of the beast.....sorry I mean US Persons.
 
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