Saturday, July 13, 2013

Filing FBARs Electronically

Filing FBARs Electronically
...on behalf of my clients, here are five items that will be useful to know:
1.  An IRS Form 2848 will suffice to provide "documented authority" to e-file the FBAR.
2.  FinCEN is in the process of creating its own power of attorney form (though we've strongly suggested that continued use of the already common Form 2848 would be highly desirable given that so many individuals turn to their enrolled agents and other tax pros to file the FBAR.)
3.  If an attorney, CPA or EA files on behalf of his client, they are expected to retain (for five years) proof of your authority to do so. This proof may be maintained in electronic format.
4. FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website. Report of Foreign Bank and Financial Accounts (FBAR) :: FinCen
5. File Form 8938 if max value of account exceeds $50,000 at any point during the year. Must use US Treasury FMS website Treasury Reporting Rates of Exchange to calculate foreign currency exchange rate.

Can an attorney, CPA or EA submit an FBAR via the BSA E-Filing System on behalf of a client?
Yes.  An attorney, CPA or EA may always assist his client in the preparation of electronic BSA forms for BSA E-Filing, including the FBAR. Consistent with FinCEN's recent proposal to provide for approved third-party filing of the FBAR, if an attorney, CPA or EA has been provided documented authority by the legally obligated filers to sign and submit FBARs on their behalf through the BSA E-Filing System, that attorney, CPA or EA can do so through a single BSA E-Filing account established for the attorney, CPA or EA. If such authority is not provided, the filings must be signed and submitted through a BSA E-Filing account unique to each client.

No comments:

Post a Comment