Got money in a foreign account? It’s time to tell the IRS
If you had money in a foreign bank account during the 2010 
calendar year – either personal or business funds – it’s time to share that information with the government.
Any U.S. individual or entity (corporation, partnership, trust, etc.) who has a financial interest in or signature authority over a foreign financial account must file a Foreign Bank Account Report with the IRS if the aggregate value of all foreign financial accounts exceeds $10,000 during the calendar year.
The FBAR is due June 30, 2011, for the 2010 calendar year (ending December 31, 2010).
If a U.S. company has a foreign bank account and an individual at that company has signature authority over the account, then both the company and the individual need to file the FBAR forms.
The Treasury Department has initiated a new voluntary disclosure initiative whereby taxpayers who have foreign financial accounts that have gone unreported in prior years can file the delinquent reports. All reports from 2003 to 2010 must be filed, and delinquent reports must be filed no later than August 31, 2011. If there is unreported income due that was omitted from a taxpayer’s return(s), then amended or original tax returns need to be prepared to report the income and the additional tax that needs to be paid. Penalties will apply if there is any unreported taxable income.
If there is no unreported taxable income, then only the delinquent FBAR forms need to be filed along with an explanation as to why they are being filed late. No penalties will apply.
For further information on filing the FBAR, call us at 617-696-8900 or contact us here. More information from the IRS on the FBAR is available here.