New and Enhanced FBAR and FATCA Reporting Requirements

December 5, 2016 at 1:00pm2:40pm
Lorman Education Services

Who is required to file an FBAR? Form 8938? Understand your reporting obligations and stay compliant.

Much attention has been focused on offshore bank accounts and the obligation of U.S. taxpayers to report such accounts on the much-heralded Report of Foreign Bank and Financial Accounts or FBAR form. The FBAR rules require taxpayers to annually report whether they have a financial interest in, or signature or other authority over, foreign bank accounts, and impose substantial civil and criminal penalties for failing to do so. The Internal Revenue Service has imposed additional reporting requirements that obligates U.S. taxpayers to annually disclose specified foreign financial assets when they file their personal income tax returns for 2011 and thereafter. In addition, the information reporting requirements of FATCA will require foreign banks and financial institutions to annually disclose to the IRS information about their U.S. depositors, and this has significant consequences for noncompliant U.S. taxpayers. You will explore the new FATCA foreign asset reporting rules, be provided with an update on the existing FBAR reporting regime for foreign bank accounts, address the FATCA information reporting regime for foreign banks, and discuss the U.S. government's enforcement efforts.

Learning Objectives

- You will be able to identify the FBAR and FATCA asset reporting rules.

- You will be able to explain penalties for nonfiling.

- You will be able to define what foreign assets are required to be reported.

- You will be able to review the FATCA information reporting obligations for foreign banks.

Overview and Learning Points

This FATCA training provides a general overview of the latest changes that have been made to FATCA and FBAR rules. Content is geared towards accounting and legal professionals, so you can answer questions such as:

  • Who is required to file form 8938, Statement of Specified Foreign Financial Assets?
  • What assets must be disclosed and what are the penalties for noncompliance?
  • What is an FBAR form, how does it differ from an 8938 form, and what are the penalties for not filing one?

In addition, this topic covers important background information on FATCA reporting obligations for foreign banks, the current status of intergovernmental agreements, and their implications for American taxpayers with foreign accounts.

After completing our FATCA training online, accounting professionals can gain the background they need to advise clients with foreign holdings or U.S. taxpayers living and working abroad. Upon completion, you may receive a full or partial continuing education credit with your state’s bar association or public accountancy board. Please check the Credits tab for a state-by-state list of eligible programs.