There is no late FBA
R penalty but there are non-filing penalties. If it is determined that you were willful, the penalty can be up to 50% of the value of the account.
If you are required to FBARS then you should file delinquent FBA
RS for the years open under the Statute of Limitations to prevent the IRS from assessing FBAR penalties. There are several voluntary disclosure programs to file late FBA Rs.
Failing to file an FBAR
can carry a civil penalty of $10,000 for each non-willful violation. If it is willful, the penalty is the greater of $100,000 or 50 percent of the amount in the account for each violation.
FinCEN Form 114, Report of Foreign Bank and Financial Account
s, is used to report a financial interest in or signature authority over a foreign financial account
A US person(including a citizen, resident, green card holder, corporation, partnership, limited liability company, trust or estate) must file an FBAR
to report a financial interest in or signature over at least 1foreign financial account located if the aggregate maximum value of those foreign financial accounts exceeded $10,000 at any time during the calendar year.
Sometimes legal counsel is not necessary to correct FBAR
errors. In some cases, legal counsel is strongly recommended. Unsure? Contact us.