Steps for FBAR Compliance:
1. List investments made in foreign countries and money in foreign accounts/investments
2. Determine which foreign financial accounts to be included for respective filing (FBAR 2)
3. Verify if FBAR is applicable based on filing status and reporting threshold (# 5, 6, 7)
4. Gather information required of each of your foreign financial asset (#8, 9) (FBAR 3)
5. Submit/file the form (#13) with respective department (#4) before deadline (#10, 11) to save penalty (#12)
| # | Question | FBAR |
| 1 | Purpose | Aid in Law Enforcement |
| 2 | Requirement | Old |
| 3 | Name of Act or Sponsor | Bank Secrecy Act (BSA) |
| 4 | Agency/ Administrator | Financial Crimes Enforcement Network (FinCEN) of Department of Treasury |
| 5 | Who must file? | U.S. citizens, resident aliens (Anyone filing Form 1040), trusts, estates, and domestic entities |
| 6 | What to Report | Foreign Financial Account (Please see another table for details) |
| 7 | Reporting Threshold (Total Value of Assets) | $10,000 at any time during the calender year |
| 8 | What is to be reported? | Name, Type of filer, Type of account, SSN or ITIN, Highest value, Name and Address of the foreign asset/ account, Account number or other designation |
| 9 | How maximum account or asset values determined? | Use account statements to determine the maximum value using the end of the year exchange rate. |
| 10 | When due? | Received by June 30 |
| 11 | Extensions? | No extensions. File and then revise. |
| 12 | Penalties: Non-Willful | Civil penalty not to exceed $10,000 |
| Penalties: Non-Willful – Reasonable Cause | Penalty may not apply | |
| Penalties: Willful-Civil | Civil penalty: $100,000 or 50% of balance | |
| Penalties: Willful – Criminal | Criminal penalty up to $250,000 and/or 5 year imprisonment | |
| 13 | Where to file? | Mail to: Department of the Treasury, P.O. Box 32621, Detroit, MI 48232. Express mail to: IRS Enterprise Computing Center Attn: CTR Operations, Mailroom, 4th Fl., 985 Michigan Ave., Detroit, MI 48226. |
