What Is FBAR?
FBAR (Foreign Bank Account Report) is a U.S. Treasury requirement for reporting foreign financial accounts. If you're a U.S. citizen or resident with accounts abroad, this may apply to you.
Who Must File?
You must file an FBAR if:
- You are a U.S. person (citizen, resident, or certain visa holders)
- You have a financial interest in or signature authority over foreign accounts
- The aggregate value of all foreign accounts exceeded $10,000 at any time during the year
Common Situations for Arab Americans
Many in our community maintain accounts in their home countries:
- Family bank accounts in Lebanon, Jordan, Syria, or Egypt
- Business accounts in the Gulf states
- Inherited accounts from relatives
- Investment accounts in Arab countries
All of these may require FBAR reporting.
Filing Requirements
- Deadline: April 15 (automatic extension to October 15)
- Where to file: FinCEN Form 114, filed electronically
- Information needed: Account numbers, maximum values, bank names and addresses
Penalties for Non-Filing
FBAR penalties can be severe:
- Non-willful violation: Up to $10,000 per account per year
- Willful violation: Up to $100,000 or 50% of account balance per violation
- Criminal penalties: Possible fines and imprisonment
What If You Haven't Filed?
If you have unreported foreign accounts, options include:
- Streamlined filing: For non-willful taxpayers
- Voluntary disclosure: For willful violations
- Quiet disclosure: Filing late FBARs (risky, not recommended)
FATCA vs. FBAR
FATCA (Form 8938) is a separate requirement with higher thresholds. You may need to file both forms.
Why Arabic-Speaking Help Matters
Tax law is complex, and the stakes are high. An Arabic-speaking tax attorney can:
- Explain your obligations in your language
- Help you gather account information from foreign banks
- File accurate reports to avoid penalties
- Represent you if the IRS has questions
Get Compliant Today
Don't risk severe penalties. Contact an Arabic-speaking tax lawyer to review your situation and ensure you're meeting all reporting requirements.