New FinCEN Form 114 replaces FBAR Form TD F 90-22.1

New FinCEN Form 114  replaces FBAR Form TD F 90-22.1

• If you have a financial interest in or signature authority over foreign financial account(s), individually or in total which are $10,000 or more at any time during the calendar year, the Bank Secrecy Act (BSA) requires you to report the account to the Internal Revenue Service. 
• 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. 
• Attach Form 8938 Statement of Specified Foreign Financial Assets to Form 1040 if max value of account(s) exceeds $50,000.

New Reporting Requirements by U.S. Taxpayers Holding Foreign Financial Assets (Form 8938) 

• 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.

Offshore Voluntary Disclosure Program

• On Jan 9, 2012, the IRS reopened the Offshore Voluntary Disclosure Program 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.

Here Are The Changes:

• 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 BSA E-Filing System. 
• 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. This form is not filed with the Form 114 but maintained with the FBAR records by the filer. 

BSA E-Filing System website

• The taxpayer has to go on the website and can download an Adobe PDF version of the FBAR, fill out the report, sign and 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. 

Becoming a BSA Filer:

• 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 tax payers required to file to sign and 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.