F-BAR – Report of Foreign Bank and financial accounts

Are you obliged to file FBAR in the U.S?

As part of the ongoing effort to prevent money laundering, every American citizen is obliged to report their maximum amounts held if foreign financial accounts if the aggregated amounts exceeded 10,000$.

Type of accounts that must be reported in the FBAR Include the following:

1. Bank account.
2. Checking account.
3. Pension fund.
4. Advanced study fund.
5. Provident fund.
6. Managers insurance.

As part of FBAR filing you must provide the following information:

1. The type of account.
2. Details of joint members (if relevant).
3. Account number.
4. The name of the financial institution in which the account is held.
5. The address of the financial institution.
6. The maximum amount of money held in the account during the tax year.

For your convenience, as soon as you contact us we will send you an excel sheet to help you gather this information. Once you have filed the form it is necessary to send it back to us. If you wish to file the FBAR independently please click here.

FBAR filling date

Up to 2014 the law permitted to file FBAR’s until June 30^th of the following year (I.E for the year 2014 you are required to file the FBAR by the June 30^th 2015). In order to avoid fines and penalties for filling late, as of now (2016 tax year) you are required to file your FBAR before 0ctober 15, 2017.

Please note:

• FBAR reporting is not susceptible to taxation. The sole purpose of the FBAR is to prevent money laundering and track money transfers
•  American citizens who have signed W-9 forms, provided to them by financial institutions in which they hold accounts in Israel, and have not reported income from those accounts and/or information regarding those accounts, are susceptible to IRS penalties.
• Our company is authorized to file FBAR electronically and we have filed more than 2000 FBAR’s in the past year without any fines or penalties.

The W-9 form allows the financial institutions to pass information regarding accounts held by American citizens to the tax authorities in the US. Therefore, you must file FBAR’s in addition to filling a yearly tax return to the IRS.

*For your convenience we will send an Excel spreadsheet that should assist you with organizing the information required above a once a request is made by you.

Please fax all relevant document to 077-4448773 or scan the documents and email them to info@virtuetax.com  with the relevant contact information included (please do not send photos or photocopies of the documents).