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2015 FBAR (FinCEN Form 114) Due on June 30, 2016

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2015 FBAR is one of the most important tax information returns required by the IRS this year. While the 2015 FBAR is not the most complicated form, it is definitely the one that is associated with the most severe penalties.

2015 FBAR History

The FBAR is an abbreviation for the Report of Foreign Bank and Financial Accounts (the “FBAR”). The current official name of the FBAR is FinCEN Form 114 (prior to mandatory e-filing, Form TD F 90-22.1 was the name of the FBAR).

Many of my clients are surprised to learn that FBAR is a tax information return with a long history, dating back to the late 1970s. Its origin lies in the Bank Secrecy Act (31 U.S.C. §5311 et seq.) and it was originally meant to combat money laundering. However, after September 11, 2001, the FBAR enforcement was turned over to the IRS and it became a tax-enforcement tool of heretofore unimaginable power due to its heavy penalties.

Who is Required to File 2015 FBAR

The Department of Treasury (the “Treasury”) requires that an FBAR is filed whenever a US person has a financial interest in or signatory authority over foreign financial accounts and the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. If you had such a situation in 2015, then you must seek an advice from an FBAR lawyer on whether you need to file the 2015 FBAR.

2015 FBAR Deadline

2015 FBAR must be e-filed with the IRS by June 30, 2016; there are no extensions available – the 2015 FBAR must be received by the IRS no later than June 30, 2016. Note: FBAR due date now coincides with due dates for tax returns. 

Consequences of Failure to File Your 2015 FBAR Timely

If your 2015 FBAR is not timely filed, then it will be considered delinquent and might be subject to severe FBAR civil and criminal penalties, depending on your circumstances. It is also important to point out that an incorrect or incomplete 2015 FBAR will also be considered delinquent with the higher possibility of imposition of the FBAR’s draconian penalties.

Multiple Years of FBAR Delinquency

If you did not file the FBARs in the prior years and you were required to do so, this situation is extremely dangerous (especially in our FATCA-dominated world) and may result in imposition of multiple FBAR penalties. This is why you should seek advice of an experienced FBAR lawyer as soon as possible

Contact Sherayzen Law Office for Assistance with Your FBAR Compliance

If you have not filed your FBARs previously and you were required to do so, contact Sherayzen Law Office for help as soon as possible. Our team of experienced tax professionals, headed by attorney Eugene Sherayzen, has helped hundreds of US taxpayers around the world to lower and even eliminate their FBAR penalties. We can help You!

Contact Us NOW to Schedule Your Confidential Consultation

FBAR Attorney

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If you are looking for an attorney to help you with your FBAR issues, contact Sherayzen Law Office.

Sherayzen Law Office is an international tax and business law firm that specializes in FBAR compliance among other international tax issues. Our office is located in Minneapolis, but we have clients throughout the United States and overseas.

Helping U.S. taxpayers who have FBAR issues is one of our most important specializations. FinCEN Form 114 formerly Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (commonly known as the “FBAR”), is not the most complex form in the Internal Revenue Code, but it is definitely one of the most severe forms when it comes to penalties. A lot of U.S. taxpayers either do not know about this form, do not realize how important it is, or they already realized that they should have filed the FBAR earlier and do not know how to get out of the vicious cycle of non-compliance.

Our international tax firm is highly experienced in these delinquent FBAR matters, including the voluntary disclosure process. We will analyze your case thoroughly, determine your FBAR liability and identify your voluntary disclosure options. Once you make your choice with respect to your voluntary disclosure option, we will create and implement a customized case strategy, including preparation of all of the necessary tax forms and legal briefs.

Clients of Sherayzen Law Office enjoy the personal attention of Mr. Eugene Sherayzen, the firm’s owner, who will be working with you throughout the process in order to make sure that your case proceeds efficiently. He is easily accessible by phone and email throughout the case.

We believe that each case is unique, especially in such complex matters as FBAR voluntary disclosure. Our international tax law firm will be looking for the unique features in your particular fact pattern to determine the most expeditious and favorable manner to proceed with your case.

One the biggest problems facing U.S. taxpayers in finding the right FBAR representation at this point is the tendency among some accounting firms and even law firms to disregard the special circumstances of a case and automatically channel their clients into the 2012 OVDP (Offshore Voluntary Disclosure Program) at the highest penalty rates with the idea that they will figure out later what the strategy of the case will be and whether the taxpayer needs to opt-out of the program.

We believe that this is an incorrect approach which completely disregards the individual circumstances of each taxpayer and may subject them to an unnecessarily high penalties and additional legal and accounting fees. Each case should be thoroughly analyzed at the beginning of the process before the taxpayers enters the 2012 OVDP, not in the middle or even at the end of the voluntary disclosure.

Contact Sherayzen Law Office for Help with FBARs

If you have any undisclosed foreign financial accounts, contact Sherayzen Law Office as soon as possible for an individual, comprehensive, creative and ethical approach to your voluntary disclosure process.

FBAR: Exclusion of Personal and Homeowner’s Lines of Credit

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Often, I receive specific questions from my clients with respect to whether certain types of accounts should be reported on the Report of Foreign Bank and Financial Accounts (“FBAR”). Recently, one of my clients wanted to know whether he needs to report his personal and homeowner’s lines of credits on the FBAR.

A little disclaimer before I deal with the main subject of this essay. In this legal note, I do not discuss the situations where you loaned the money to someone else. This essay focus strictly on the money loaned to you.

Generally, whether the money loaned to you should be reported on the FBAR is a highly fact-dependent situation. Most such loans are not reported on the FBAR, because these loans are not considered assets. However, if a loan can be considered as an asset because of the way it is structured or because it is a part of a larger financial arrangement, the loan needs to be reported on the FBAR. You should discuss this situation with an international tax attorney who specializes in FBARs.

The situation with respect to personal and homeowner’s lines of credit, however, is much clearer. The IRS does not regard these lines of credit as assets and does not require you to disclose them on the FBAR. While this is a general rule, you should call us to discuss your specific situation in order to make sure that nothing in your situation makes these lines of credit reportable.

Contact Sherayzen Law Office to Get FBAR Help

If you have any questions with respect to FBAR or voluntary disclosure, Sherayzen Law Office can help. Our international tax firm has guided our clients throughout the United States through voluntary disclosure and FBAR reporting, making sure that the rights of our clients are protected and they pay only fair taxes and penalties.

Official Treasury Currency Conversion Rates of December 31, 2010

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Every quarter the U.S. Department of Treasury publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates). While there are many uses for these rates, the current (March 2011 revision) FBAR instructions require their use, if available, to determine the maximum value of a foreign bank account. In particular, the FBAR instructions state:

In the case of non-United States currency, convert the maximum account value for each account into United States dollars. Convert foreign currency by using the Treasury’s Financial Management Service rate (this rate may be found at www.fms.treas.gov) from the last day of the calendar year. If no Treasury Financial Management Service rate is available, use another verifiable exchange rate and provide the source of that rate. In valuing currency of a country that uses multiple exchange rates, use the rate that would apply if the currency in the account were converted into United States dollars on the last day of the calendar year.

Here is the table of the official Treasury currency conversion rates:

Country Currency Foreign Currency to $1.00
Afghanistan Afghani 44.5000
Albania Lek 106.3600
Algeria Dinar 73.1500
Angola Kwanza 90.0000
Antigua-Barbuda East Caribbean Dollar 2.7000
Argentina Peso 3.9800
Armenia Dram 360.0000
Australia Dollar 1.0400
Austria Euro 0.7700
Azerbaijan Manat 0.8200
Bahamas Dollar 1.0000
Bahrain Dinar 0.3800
Bangladesh Taka 69.0000
Barbados Dollar 2.0200
Belarus Ruble 3010.0000
Belgium Euro 0.7700
Belize Dollar 2.0000
Benin CFA Franc 503.3000
Bermuda Dollar 1.0000
Bolivia Boliviano 6.9600
Bosnia-Hercegovina Marka 1.5000
Botwana Pula 6.7500
Brazil Real 1.7200
Brunei Dollar 1.3200
Bulgaria Lev 1.5000
Burkina Faso CFA Franc 503.3000
Burma Kyat 450.0000
Burundi Franc 1243.0000
Cambodia (Khmer) Riel 4239.0000
Cameroon CFA Franc 503.3000
Canada Dollar 1.0200
Cape Verde Escudo 81.6700
Cayman Islands Dollar 0.8200
Central African Republic CFA Franc 503.3000
Chad CFA Franc 503.3000
Chile Peso 486.7000
China Renminbi 6.6700
Colombia Peso 1920.0000
Comoros Franc 361.3500
Congo CFA Franc 503.3000
Costa Rica Colon 501.9500
Cote D’Ivoire CFA Franc 503.3000
Croatia Kuna 5.5900
Cuba Peso 0.9300
Cyprus Euro 0.7700
Czech Republic Koruna 18.6400
Democratic Republic of Congo Congolese Franc 900.0000
Denmark Krone 5.7200
Djibouti Franc 177.0000
Dominican Republic Peso 37.0500
East Timor Dili 1.0000
Ecuador Dolares 1.0000
Egypt Pound 5.7900
El Salvador Dolares 1.0000
Equatorial Guinea CFA Franc 503.3000
Eritrea Nakfa 15.0000
Estonia Kroon 12.0000
Ethiopia Birr 16.4900
Euro Zone EURO 0.7700
Fiji Dollar 1.8200
Finland Euro 0.7700
France Euro 0.7700
Gabon CFA Franc 503.3000
Gambia Dalasi 28.0000
Georgia Lari 1.7600
Germany FRG Euro 0.7700
Ghana Cedi 1.4500
Greece Euro 0.7700
Grenada East Carribean Dollar 2.7000
Guatemala Quentzel 8.0000
Guinea Franc 6078.0000
Guinea Bissau CFA Franc 503.3000
Guyana Dollar 201.0000
Haiti Gourde 38.5000
Honduras Lempira 18.9000
Hong Kong Dollar 7.7700
Hungary Forint 217.1200
Iceland Krona 117.0700
India Rupee 45.7000
Indonesia Rupiah 8900.0000
Iran Rial 8229.0000
Iraq Dinar 1166.5000
Ireland Euro 0.7700
Israel Shekel 3.6800
Italy Euro 0.7700
Jamaica Dollar 85.8000
Japan Yen 83.8300
Jordan Dinar 0.7100
Kazakhstan Tenge 147.5000
Kenya Shilling 80.9000
Korea Won 1160.1500
Kuwait Dinar 0.2800
Kyrgyzstan Som 46.8000
Laos Kip 8031.0000
Latvia Lats 0.5400
Lebanon Pound 1500.0000
Lesotho South African Rand 7.0700
Liberia Dollar 49.0000
Libya Dinar 1.2500
Lithuania Litas 2.6500
Luxembourg Euro 0.7700
Macao Mop 8.0000
Macedonia FYROM Denar 45.8000
Madagascar Aria 2010.6100
Malawi Kwacha 151.0000
Malaysia Ringgit 3.1700
Mali CFA Franc 503.3000
Malta Euro 0.7700
Marshall Islands Dollar 1.0000
Martinique Euro 0.7700
Mauritania Ouguiya 290.0000
Mauritius Rupee 30.3000
Mexico New Peso 12.5000
Micronesia Dollar 1.0000
Moldova Leu 12.1700
Mongolia Tugrik 1262.4500
Montenegro Euro 0.7700
Morocco Dirham 8.5000
Mozambique Metical 35.7100
Namibia Dollar 7.0700
Nepal Rupee 72.9500
Netherlands Euro 0.7700
Netherlands Antilles Guilder 1.7800
New Zealand Dollar 1.3400
Nicaragua Cordoba 21.7900
Niger CFA Franc 503.3000
Nigeria Naira 150.6000
Norway Krone 6.2000
Oman Rial 0.3900
Pakistan Rupee 85.7000
Palau Dollar 1.0000
Panama Balboa 1.0000
Papua New Guinea Kina 2.4800
Paraguay Guarani 4700.0000
Peru Inti 0.0000
Peru Nuevo Sol 2.8300
Philippines Peso 44.1000
Poland Zloty 3.1100
Portugal Euro 0.7700
Qatar Riyal 3.6400
Romania Leu 3.2900
Russia Ruble 31.4000
Rwanda Franc 592.0200
Sao Tome & Principe Dobras 18526.1191
Saudi Arabia Riyal 3.7500
Senegal CFA Franc 503.3000
Serbia Dinar 0.7700
Seychelles Rupee 12.1000
Sierra Leone Leone 4146.0000
Singapore Dollar 1.3200
Slovak Euro 0.7700
Slovenia Euro 0.7700
Solomon Islands Dollar 7.4000
South Africa Rand 7.0700
Spain Euro 0.7700
Sri Lanka Rupee 111.3500
St Lucia East Carribean Dollar 2.7000
Sudan Pound 2.3700
Suriname Guilder 2.8000
Swaziland Lilangeni 7.0700
Sweden Krona 7.0400
Switzerland Franc 1.0000
Syria Pound 46.4500
Taiwan Dollar 30.5000
Tajikistan Somoni 4.4000
Tanzania Shilling 1483.0000
Thailand Baht 30.1800
Togo CFA Franc 503.3000
Tonga Pa’anga 1.7700
Trinidad & Tobago Dollar 6.3200
Tunisia Dinar 1.4500
Turkey Lira 1.5100
Turkmenistan Manat 2.8400
Uganda Shilling 2313.0000
Ukraine Hryvnia 7.8900
United Arab Emirates Dirham 3.6700
United Kingdom Pound Sterling 0.6400
Uruguay New Peso 19.9000
Uzbekistan Som 1645.0000
Vanuatu Vatu 92.5900
Venezuela New Bolivar 2.6000
Vietnam Dong 19500.0000
Western Samoa Tala 2.2300
Yemen Rial 214.0000
Yugoslavia Dinar 0.7700
Zambia Kwacha 4925.0000
Zimbabwe Dollar 1.0000

1. Lesotho’s loti is pegged to South African Rand 1:1 basis
2. Macao is also spelled Macau: currency is Macanese pataka
3. Macedonia: due to the conflict over name with Greece, the official name if FYROM – former Yugoslav Republic of Macedonia.