Overseas Accounts: Here’s When the IRS Wants To Know

Overseas Accounts: Here’s When the IRS Wants To Know

  • Writer: The Liberty Team

    The Liberty Team

  • Jun 28
  • 2 min read

Updated: Jul 14

Liberty Financial Solutions: FBAR Reporting for Overseas Accounts


Overseas Accounts..

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Overseas Accounts: Here’s When The IRS Wants To Know


First off, what is an FBAR? Well, FBAR stands for Foreign Bank Account Report. The official form is FinCEN Form 114. It’s used to report a financial interest in or signature authority over foreign financial accounts. It’s something that our friends at the IRS take very seriously.


Liberty Financial Solutions: FBAR Reporting for Overseas Accounts


You must file an FBAR if:


  1. You are a U.S. person — this includes U.S. citizens, U.S. residents, trusts, estates, and domestic entities (like corporations, partnerships, or LLCs) —AND

  2. The aggregate value of all your foreign financial accounts exceeds $10,000 at any time during the calendar year.

Example: If you have three foreign accounts with balances of $4,000, $5,000, and $2,000 — their total is $11,000 → you must file.

What Counts as a “Foreign Financial Account”?


  • Bank accounts (savings, checking)

  • Brokerage accounts

  • Mutual funds

  • Certain retirement accounts

  • Any other financial account located outside the United States


️ When is it Due?


  • The FBAR is due April 15, but there’s an automatic extension to October 15 if you miss the April deadline.

  • It must be filed electronically through FinCEN’s BSA E-Filing System — NOT with your tax return.


⚡ Penalties for Not Filing


FBAR penalties can be severe:

  • Non-willful violations: Up to $10,000 per violation.

  • Willful violations: The greater of $100,000 or 50% of the account balance per year.


If you suspect that you may need to file an FBAR, please reach out to us at Liberty Tax Defenders for your free consultation! We’ve helped numerous clients set up and stay on installment agreements. We’ve also saved our clients roughly $2 million in taxes the IRS said they owed. 


Call us at 817-995-5008 or shoot us an email at:  info@libertytaxdefenders.com.


We’re here to help!


Cheers!



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