What is FBAR? For US Expats in the UK
FBAR stands for Foreign Bank Account Report. It is a form that certain U.S. persons are required to file with the U.S. Department of the Treasury to report their financial interest in, or signature authority over, financial accounts located in foreign countries. The FBAR is required under the Bank Secrecy Act (BSA) and is used to help the U.S. government track and combat money laundering, tax evasion, and other financial crimes.
U.S. persons, including U.S. citizens, resident aliens, and certain non-resident aliens, are generally required to file an FBAR if they have a financial interest in, or signature authority over, one or more foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. Failure to file an FBAR when required can result in significant penalties.
It’s important to note that FBAR is separate from the reporting requirements related to foreign financial accounts on your federal income tax return, which are typically reported on the Foreign Account Tax Compliance Act (FATCA) Form 8938. It’s essential to consult with a tax professional or refer to the official IRS guidance to ensure compliance with FBAR reporting requirements, as these rules can be complex and subject to change.