FBAR (Foreign Bank Account Report)
FinCEN Form 114 requiring U.S. persons to report foreign financial accounts exceeding $10,000 aggregate value.
What You Need to Know
FBAR (FinCEN Form 114) is a report filed with the Financial Crimes Enforcement Network (FinCEN) if you have foreign financial accounts with an aggregate value exceeding $10,000 at any time during the year.
Key Details:
- Threshold: $10,000 aggregate across ALL foreign accounts (combined)
- Deadline: April 15 (automatic extension to October 15)
- Penalties: Civil penalties up to $10,000+ per year for non-willful violations; criminal prosecution possible for willful violations
Crypto on Foreign Exchanges: FinCEN has indicated that cryptocurrency held on foreign exchanges (Binance, Bitfinex, etc.) MAY require FBAR reporting, but official guidance is evolving. Conservative tax advisors recommend disclosure if you're near the $10,000 threshold.
Important:
- FBAR is separate from your tax return; file directly with FinCEN
- Applies to U.S. citizens, green card holders, and residents
- Includes foreign bank accounts, brokerage accounts, and possibly crypto exchange accounts
Related: FATCA (Form 8938) has higher thresholds but similar disclosure requirements.
Sources & References
This information is sourced from authoritative government and academic institutions:
- irs.gov
https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar
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Cost Basis (Crypto)
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FIFO (First In, First Out)
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Form 8949
IRS form used to report sales and dispositions of capital assets, including cryptocurrency.
HIFO (Highest In, First Out)
Tax optimization strategy where you sell the highest-cost assets first to minimize capital gains.
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