New FBAR Filing Rules

Folks owning foreign financial accounts, who may have grown accustomed to annually filing Form TD F 90-22.1 are facing some changes this year.

Starting with 2013 filings (due by June 30, 2014), taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during the year must ELECTRONICALLY (no more paper forms) file a Financial Crimes Enforcement Network (FinCEN) Form 114.  Check out www.irs.gov for the details of this new form and filing procedure, as well as details regarding Form 8938, Statement of Foreign Financial Assets, which must also be included with the annual income tax return.  The simple “yes or no” questions which have long appeared on Schedule B of the individual return form are still there, but may only be the start of an individual’s reporting obligation.