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Official Treasury Currency Conversion Rates of December 31, 2013 – 2013 FBAR Conversion Rates

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Every year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates”); I will refer to the “FBAR Conversion Rates”. Recently, the Treasury Department published the FBAR Conversion rates for December 31, 2013. While there are other good reasons for the existence of these rates, the 2013 FBAR Conversion Rates are especially important for persons who are required to file the FBARs.

The latest (October 2013) FBAR instructions require the use of Treasury’s Financial Management Service rates, 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.

For this reason, the international tax attorneys take their time to compile these rates with all updates. For your convenience, Sherayzen Law Office provides a table of the official  2013 FBAR Conversion Rates below (keep in mind, you still need to refer to the official website for any updates).

Country – Currency

Foreign Currency to $1.00
AFGHANISTAN – AFGHANI

56.0000
ALBANIA – LEK

101.7000
ALGERIA – DINAR

78.0250
ANGOLA – KWANZA

95.0000
ANTIGUA – BARBUDA – E. CARIBBEAN DOLLAR

2.7000
ARGENTINA – PESO

6.5180
ARMENIA – DRAM

404.0000
AUSTRALIA – DOLLAR

1.1200
AUSTRIA – EURO

0.7260
AZERBAIJAN – NEW MANAT

0.8000
BAHAMAS – DOLLAR

1.0000
BAHRAIN – DINAR

0.3770
BANGLADESH – TAKA

79.0000
BARBADOS – DOLLAR

2.0200
BELARUS – RUBLE

9510.0000
BELGIUM – EURO

0.7260
BELIZE – DOLLAR

2.0000
BENIN – CFA FRANC

475.0000
BERMUDA – DOLLAR

1.0000
BOLIVIA – BOLIVIANO

6.8600
BOSNIA-HERCEGOVINA MARKA

1.4210
BOTSWANA – PULA

8.7490
BRAZIL – REAL

2.3620
BRUNEI – DOLLAR

1.2540
BULGARIA – LEV

1.4210
BURKINA FASO – CFA FRANC

475.0000
BURMA – KYAT

980.0000
BURUNDI – FRANC

1540.0000
CAMBODIA (KHMER) – RIEL

4103.0000
CAMEROON – CFA FRANC

476.5400
CANADA – DOLLAR

1.0640
CAPE VERDE – ESCUDO

80.3030
CAYMAN ISLANDS – DOLLAR

0.8200
CENTRAL AFRICAN REPUBLIC – CFA FRANC

475.0000
CHAD – CFA FRANC

476.5400
CHILE – PESO

525.3200
CHINA – RENMINBI

6.0540
COLOMBIA – PESO

1924.9800
COMOROS – FRANC

361.3500
CONGO – CFA FRANC

475.0000
CONGO, DEM. REP – CONGOLESE FRANC

920.0000
COSTA RICA – COLON

495.2000
COTE D’IVOIRE – CFA FRANC

475.0000
CROATIA – KUNA

5.4600
CUBA-PESO

1.0000
CYPRUS – EURO

0.7260
CZECH – KORUNA

19.4570
DENMARK – KRONE

5.4190
DJIBOUTI – FRANC

177.0000
DOMINICAN REPUBLIC – PESO

42.6500
ECAUDOR – DOLARES

1.0000
EGYPT – POUND

6.9480
EL SALVADOR – DOLARES

1.0000
EQUATORIAL GUINEA – CFA FRANC

476.5400
ERITREA – NAKFA

15.0000
ESTONIA – EURO

0.7260
ETHIOPIA – BIRR

19.0600
EURO ZONE – EURO

0.7260
FIJI – DOLLAR

1.8640
FINLAND-EURO

0.7260
FRANCE-EURO

0.7260
GABON – CFA FRANC

476.5400
GAMBIA – DALASI

39.0000
GEORGIA – LARI

1.7400
GERMANY FRG – EURO

0.7260
GHANA – CEDI

2.3500
GREECE – EURO

0.7260
GRENADA – EAST CARIBBEAN DOLLAR

2.7000
GUATEMALA – QUENTZAL

7.8410
GUINEA – FRANC

7006.0000
GUINEA BISSAU – CFA FRANC

475.0000
GUYANA – DOLLAR

202.0000
HAITI – GOURDE

43.5500
HONDURAS – LEMPIRA

20.4200
HONG KONG – DOLLAR

7.7530
HUNGARY – FORINT

215.7300
ICELAND – KRONA

115.0300
INDIA – RUPEE

61.5000
INDONESIA – RUPIAH

12100.0000
IRAN – RIAL

8229.0000
IRAQ – DINAR

1166.0000
IRELAND-EURO

0.7260
ISRAEL-SHEKEL

3.4690
ITALY-EURO

0.7260
JAMAICA – DOLLAR

104.0000
JAPAN – YEN

105.0100
JERUSALEM-SHEKEL

3.4690
JORDAN – DINAR

0.7080
KAZAKHSTAN – TENGE

153.6000
KENYA – SHILLING

86.4000
KOREA – WON

1055.2500
KUWAIT – DINAR

0.2820
KYRGYZSTAN – SOM

49.4000
LAOS – KIP

8006.0000
LATVIA – LATS

0.5080
LEBANON – POUND

1500.0000
LESOTHO – SOUTH AFRICAN RAND

10.4800
LIBERIA – U.S. DOLLAR

79.0100
LIBYA-DINAR

1.2290
LITHUANIA – LITAS

2.5080
LUXEMBOURG-EURO

0.7260
MACAO – MOP

8.0000
MACEDONIA FYROM – DENAR

>43.4000
MADAGASCAR-ARIA

2236.0100
MALAWI – KWACHA

448.0000
MALAYSIA – RINGGIT

3.2770
MALI – CFA FRANC

475.0000
MALTA-EURO

0.7260
MARSHALLS ISLANDS – DOLLAR

1.0000
MARTINIQUE-EURO

0.7260
MAURITANIA – OUGUIYA

295.0000
MAURITIUS – RUPEE

29.9500
MEXICO – NEW PESO

13.0890
MICRONESIA – DOLLAR

1.0000
MOLDOVA – LEU

12.8950
MONGOLIA – TUGRIK

1654.1000
MONTENEGRO-EURO

0.7260
MOROCCO – DIRHAM

8.1470
MOZAMBIQUE – METICAL

29.8000
NAMIBIA – DOLLAR

10.4800
NEPAL – RUPEE

98.8000
NETHERLANDS – EURO

0.7260
NETHERLANDS ANTILLES – GUILDER

1.7800
NEW ZEALAND – DOLLAR

1.2160
NICARAGUA – CORDOBA

25.3300
NIGER – CFA FRANC

475.0000
NIGERIA – NAIRA

159.7000
NORWAY – KRONE

6.0830
OMAN – RIAL

0.3850
PAKISTAN – RUPEE

105.1600
PALAU-DOLLAR

1.0000
PANAMA – BALBOA

1.0000
PAPUA NEW GUINEA – KINA

2.3530
PARAGUAY – GUARANI

4585.4400
PERU – NUEVO SOL

2.7900
PHILIPPINES – PESO

44.3800
POLAND – ZLOTY

3.0140
PORTUGAL-EURO

0.7260
QATAR – RIYAL

3.6410
ROMANIA – LEU

3.2500
RUSSIA – RUBLE

32.8640
RWANDA – FRANC

665.6900
SAO TOME & PRINCIPE – DOBRAS

17736.4360
SAUDI ARABIA – RIYAL

3.7500
SENEGAL – CFA FRANC

475.0000
SERBIA-DINAR

83.1300
SEYCHELLES – RUPEE

11.9420
SIERRA LEONE – LEONE

4340.0000
SINGAPORE – DOLLAR

1.2630
SLOVAK REPUBLIC – EURO

0.7260
SLOVENIA – EURO

0.7260
SOLOMON ISLANDS – DOLLAR

7.0320
SOUTH AFRICA – RAND

10.4800
SOUTH SUDANESE – POUND

3.0000
SPAIN – EURO

0.7260
SRI LANKA – RUPEE

130.7500
ST LUCIA – EC DOLLAR

2.7000
SUDAN – SUDANESE POUND

6.1000
SURINAME – GUILDER

3.3500
SWAZILAND – LILANGENI

10.4800
SWEDEN – KRONA

6.4140
SWITZERLAND – FRANC

0.8910
SYRIA – POUND

141.3700
TAIWAN – DOLLAR

29.8150
TAJIKISTAN – SOMONI

4.7700
TANZANIA – SHILLING

1585.0000
THAILAND – BAHT

32.7400
TIMOR – LESTE DILI

1.0000
TOGO – CFA FRANC

475.0000
TONGA – PA’ANGA

1.7420
TRINIDAD & TOBAGO – DOLLAR

6.3800
TUNISIA – DINAR

1.6430
TURKEY – LIRA

2.1360
TURKMENISTAN – MANAT

2.8430
UGANDA – SHILLING

2520.0000
UKRAINE – HRYVNIA

8.2300
UNITED ARAB EMIRATES – DIRHAM

3.6730
UNITED KINGDOM – POUND STERLING

0.6050
URUGUAY – PESO

21.1000
UZBEKISTAN – SOM

2237.0000
VANUATU – VATU

95.3600
VENEZUELA – BOLIVAR

6.3000
VIETNAM – DONG

21100.0000
WESTERN SAMOA – TALA

2.2590
YEMEN – RIAL

214.5000
ZAMBIA – NEW KWACHA

5.5000
ZAMBIA – KWACHA

5455.0000
ZIMBABWE – DOLLAR

1.0000

FATCA Online Registration System – FATCA Lawyer Minneapolis

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On August 22, 2013, the Internal Revenue Service announced the opening of a new online registration system for financial institutions that need to register with the IRS under the Foreign Account Tax Compliance Act (FATCA).

Financial institutions that must register with the IRS to meet their FATCA obligations can now begin the process of registering by creating an account and providing required information. Financial institutions will also be able to provide required information for their branches of operation and other members of their expanded affiliate groups in which the financial institution is the lead organization.

The registration system, designed to enable secure account management, is a web-based application with around-the-clock availability.

Within a secure environment, the new registration system enables financial institutions to:

•establish online accounts;
•customize home pages to manage accounts;
•designate points of contact to handle registrations;
•oversee member and/or branch information; and
•receive automatic notifications of status changes.

Financial institutions are encouraged to become familiar with the system, create their online accounts and begin submitting their information. Starting in January 2014, financial institutions will be expected to finalize their registration information by logging into their accounts, making any necessary changes and submitting the information as final.

As registrations are finalized and approved in 2014, registering financial institutions will receive a notice of registration acceptance and will be issued a global intermediary identification number.

The IRS will electronically post the first IRS Foreign Financial Institution (FFI) List in June of 2014, and will update the list monthly. To ensure inclusion in the June 2014 IRS FFI List, financial institutions will need to finalize their registrations by April 25, 2014.

FBAR Lawyers Minneapolis

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Sherayzen Law Office is a premier international law firm that specializes in FBAR compliance among other international tax issues. The firm is headquartered in Minneapolis, but it serves clients throughout the United States and overseas.

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.

Helping these taxpayers is our specialty. Our international tax firm is highly specialized and experienced in the FBAR matters, including FBAR voluntary disclosure. We will analyze your case thoroughly, determine what your FBAR liability is (because this is not a straightforward matter and there are a lot of factors that influence your potential FBAR penalties) and identify your voluntary disclosure options.

Once you have made your choice with respect to your voluntary disclosure, we will proceed with implementing your customized case strategy. Attorney Eugene Sherayzen will personally be working with you throughout the case; we will prepare all of the required documentation (including any tax forms and the necessary legal briefs), submit all documentation to the IRS and rigorously represent your interests before the IRS throughout the voluntary disclosure process.

Contact Sherayzen Law Office for Help with FBARs

If you have any undisclosed foreign financial accounts, contact Sherayzen Law Office as soon as possible. The earlier you contact us, the sooner we can schedule a consultation to review your case. It is highly important that you contact Sherayzen Law Office before the IRS begins its investigation of your undisclosed accounts, because such investigations may preclude the availability of some of the voluntary disclosure options.

FBAR Criminal Penalties

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handcuffs

Potentially, a person who willfully fails to file an FBAR or files a false FBAR may be subject to:

  • A prison term of up to 10 years
  • Criminal penalties of up to $500,000
  • or both

When it comes to penalties, FinCEN Form 114 formerly Form TD F 90-22.1, Report on Foreign Bank and Financial Accounts (commonly known as FBAR), is one of the most severe forms ever issued by the U.S. Department of the Treasury.

In addition to a rich arsenal of civil penalties, the FBAR is also armed with criminal penalties that U.S. taxpayers may face in cases of willful non-compliance with the FBAR regulations.  The two most common cases for criminal prosecution are willful failure to file an FBAR and willful filing a false FBAR, especially when combined with potential tax evasion.

The authority for the severe criminal penalties can be found in 31 U.S.C. § 5322.  This means that, potentially, a person who willfully fails to file an FBAR or files a false FBAR may be subject to a prison term of up to 10 years, criminal penalties of up to $500,000 or both potentially, a person who willfully fails to file an FBAR or files a false FBAR may be subject to a prison term of up to 10 years, criminal penalties of up to $500,000 or both.

With the mountain of information that the IRS recently accumulated as a result of the 2009 OVDP, 2011 OVDI and, now, 2012 OVDP voluntary disclosure programs, one should expect a dramatic rise in FBAR enforcement. This, of course, means that we are likely to witness the equivalent rise in FBAR audits and criminal prosecutions.

Contact Sherayzen Law Office for FBAR Help

If you have undisclosed foreign accounts and you are subject to the FBAR requirements, contact Sherayzen Law Office immediately.  Our experienced international tax firm will thoroughly review your case, analyze the available options in a responsible and creative way, create a case plan, draft and complete the necessary legal and tax documents and forms, and rigorously represent your case before the IRS.

Don’t Face The IRS Alone! call now! 952-500-8159

Voluntary Disclosure Program: Possible Renewal With Modifications

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On December 9, 2010, in his prepared remarks before the “23rd Annual Institute on Current Issues in International Taxation IRS” (in Washington, D.C.), Commissioner Doug Shulman hinted that the IRS is considering whether to renew the Voluntary Disclosure Program. The new Voluntary Disclosure Program would have tougher penalties that the original Program that ended in October of 2009, but it would still offer a way for U.S. taxpayers to comply with the U.S. tax laws while avoiding the worst consequences of tax noncompliance.

Here is a relevant excerpt from Commissioner Shuman’s speech:

“Given its success, we are seriously considering another special offshore Voluntary Disclosure program. However, there will be some fundamental differences. Taxpayers will not get the same deal as those who came in under the original program. To be fair to those who came in before the deadline, the penalty – and thus the financial cost to participate – will increase. Let me say too that we expect to make the terms of any new program available to those who have already come in after October 2009 when that program expired. Stay tuned for more details as they become available.”

Voluntary disclosure is usually the best way to bring your tax affair in full compliance with the U.S. tax laws. Moreover, voluntary disclosure process often reveals nonconformity with other U.S. tax compliance requirements, such as FBARs, Form 5471, Form 8865, Canadian RRSP disclosure, et cetera.

Sherayzen Law Office has helped the taxpayers throughout the United States to voluntarily disclose their income and assets, negotiate their tax obligations, and bring their tax affairs in full compliance with U.S. tax laws. At the same time, we have helped our clients to resolve such issues as delinquent FBARs, Form 5471/8865 filings, foreign trust income disclosure, Canadian RRSP reporting, and other relevant tax compliance issues. We will guide you every step of the way, draft the necessary documents and negotiate with the IRS.

Call NOW (952) 500-8159 to discuss your tax issues with an experienced tax attorney! Remember, your consultation is confidential and protected by the attorney-client privilege.