FBAR: Form FinCEN 114 replaces TD F 90-22.1 replaced
- On September 30th, 2013, the Financial Crimes Enforcement Network (FinCEN) made a very important change to the FBAR form which will effect it's filing for 2014.
- Form FinCEN 114 reporting threshold (total value of foreign assets) is $10,000 at any time during the calendar year.
- The FinCEN Form 114 supersedes TD F 90-22.1 as the official FBAR form.
- The new FinCEN Form 114 is only available online on the BSA E-Filing System website.
- A paper copy of the FinCEN Form 114 will not be accepted.
- The system allows the filer to enter the calender reported, including past years on the online form.
- The online form offers an option to explain a late filing.
- It also lets you indicate if a filing is being made in conjunction with an IRS compliance program.
- If you are filing FBAR with your spouse jointly or if you wish to have a third party preparer file your FBARs on your behalf, you can use the new FinCEN Form 114a. Form 114a is not filed with the Form 114 but maintained with the FBAR records by the filer.
- The taxpayer has to go on the website and can download an Adobe PDF version of the FBAR, fill out the report, sign & save a copy & then submit the FBAR on the BSA Website.
- Or the taxpayer can designate their EA, CPA or attorney to file on the BSA website on their behalf.
- An Enrolled Agent, CPA or Attorney can become a designated third-party filer.
- The EA, CPA or attorney must make sure they have documented authority from the taxpayers required to file to sign & submit FBARs on their behalf through the BSA E-Filing System.
- If such authority has been provided, the EA, CPA or attorney can file the FBARs through the single BSA account established for them.
- Professional tax software programs may have included the FinCEN Form 114, enabling e-fling with the BSA Website.
- The electronic version of the FBAR is currently available and must be filed electronically effective July 1, 2013.
- To file an FBAR report
- Line Item Instructions for completing the FBAR (Form 114)
- Record of Authorization to Electronically File FBARs (Form 114a) Click on the link to open the form to authorize spouse (if filing jointly) or a third party (individual or entity) to file the FBAR on your behalf. This form may be completed and saved electronically. Follow the instructions and complete all of the requested information. The filer and the account owner should maintain a copy of the completed form. The form must be made available upon request by FinCEN or the IRS.
- Special notice for 2013 filings due by June 30, 2014
- Taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. File Form 8938 if max value of account(s) 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.
- The new Form 8938 filing requirement does not replace or otherwise affect a taxpayers requirement to file FBAR. A chart providing a comparison of Form 8938 and FBAR requirements, and other information to help taxpayers determine if they are required to file Form 8938, may be accessed from the IRS Foreign Account Tax Compliance Act Web page.
- Attach Form 8938 Statement of Specified Foreign Financial Assets to Form 1040 if max value of account(s) is more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the tax year
- On Jan 9, 2012, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program will be open for an indefinite period until otherwise announced.
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