Report of Foreign Bank & Financial Accounts
If you have more than $10,000 in your foreign financial account (Korea) at any time during the year, you must
complete FinCen 114 and report to the U.S. Department of the Treasury. The types of financial accounts to be reported include
bank accounts, stocks, bond, mutual funds, and the amount should be the aggregate value of each account that exceeds
$10,000 during the year, not the end of the year. If you did not report FBAR, you will be penalized whether it was willful or non-willful.
Non-willful violations are subject only to a civil penalty which is up to $10,000 per violation.
For willful violations, the penalty may be greater of $100,000 or 50% of the account balance per violation.
If you are a U.S. citizen, permanent resident, U.S. resident, U.S. Corporation, partnership, trust institution that owns or has the authority to sign a financial account and have the aggregate value of each account of more than $10,000, you must file an FBAR. If you are married and each have more than $10,000 in the foreign financial account, they must file an FBAR separately even if they have filed jointly for a tax return.
As with the deadline for the tax return, you must file an FBAR with the foreign financial account value of the previous year by April 15th of each year, and you can extend the deadline by October 15th.
You can use the BSA E-filing system to report to the U.S. Department of the Treasury.
Maximum value of each financial account and market value of the asset will be filed by applying either the U.S. currency or standard currency of the tax year.
It will be classified depending on the willfulness.
For non-willful violations, the penalty is imposed up to $10,000. For willful violations, you may be penalized to a maximum of $100,000 or 50% of the balance of each account.
The following items should be filed through an FBAR:
Frequently asked questions
- Foreign bank located at an American branch and has an account at that branch
- Foreign securities or stocks that are not in financial institutions
- Foreign partnership stake
- Domestic(U.S.) investment trust fund invested in foreign stocks or securities
- Foreign hedge funds and foreign private equity funds
- Foreign real estate that you own
- Foreign real estate held through foreign companies
(Foreign company itself is a specific foreign financial asset and its maximum value includes the value of the real estate)
- Foreign currency that you own
- High price jewelry that you own
- Personal assets that you can collect such as artworks, antiques, treasures, cars that you own
- Social security benefits provided by foreign governments
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