US Expats Don't Know About FBAR

Though the deadline for filing Foreign Bank and Financial Accounts (FBAR) is in less than a month, 62% of US Expats say they don’t know what FBAR is.

London, UK (Pryce Warner International) June 6th, 2011 – Despite the FBAR deadline being June 30th, a study has revealed that 62% US Expats do not know what FBAR is. This is a concerning statistic as the penalties for non-compliance can be severe.

All US citizens and green card holders that have any kind of overseas financial interest e.g. a bank account are required to submit a report of these accounts the US Department of Treasury every year. This report must be received by June 30th of the year immediately following the year being reported. It is vital that Expats file their returns before this date, as there are no extensions.

The penalty for non-compliance is a fine of 50% of the value of any accounts that have more than $10 000 in them at any time over the year.

FBAR is the means that the US government uses to ensure that individuals with foreign financial interests are not in breach of US law. It is primarily designed to weed out those with unreported or illicit sources of income. There is speculation that the Treasury will also begin to become more aggressive in ensuring compliance with regulators, even going as far as potentially fining foreign banks or financial institutions that enable individuals to hide assets.

US expats are required to file the form if they have over $10,000 in financial accounts. Those filing their own taxes or with new foreign assets often do not know about FBAR or how it works. One of the primary ways that individuals can ensure compliance with all such law is to take advantage of professional asset and tax advisors, as they have the necessary experience to ensure that your assets are fully declared and compliant with international taxation laws.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, a financial service provider for Expats commented: “It is highly concerning that so many people have not heard of FBAR as the penalties for late returns or non-compliance can be highly damaging. Even though Expats are not the primary targets of FBAR if they are completely unaware of the system they are exposing themselves to unnecessary risk. Anyone that is unaware of FBAR should ensure that they speak to a tax advisor immediately to ensure that they fully declare their overseas holdings by June 30th. Especially if you are unsure of whether or not FBAR applies to you, it would be a good idea to consult a professional international tax advisor to find out and ensure that you are not falling foul of the law. With the potential penalties being so damaging, it is vital that all US Expats are aware of FBAR and seek advice on how to file their returns.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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