Foreign Bank Account Report (FBAR)

The Foreign Bank Account Report (FBAR) is a form that certain U.S. persons must file annually if they have financial interests in or signature authority over foreign bank accounts exceeding $10,000 at any point during the year. The purpose is to improve transparency and prevent tax evasion by tracking certain offshore assets. The form, FinCEN Form 114, is submitted to the U.S. Treasury, not the IRS. Failure to file the FBAR when required can result in substantial penalties, emphasizing the importance of compliance for taxpayers with international financial interests.