FBAR 2025 Update: Filing Requirements, Recent Cases, Deadlines, Extension, Penalty Resolution, Waiver Provisions

Although the 11th Circuit Court recently ruled that certain FBAR penalties were excessive, even when willful, (Schwarzbaum, 24 F.4th 1355 (11th Cir. 2022)), the IRS continues to pursue these lucrative penalties. Foreign bank accounts remain a top priority for the IRS, including imposing penalties in the millions of dollars against taxpayers who do not timely file a complete Report of FBAR. While the form and filing requirements remain in place, FinCEN and the IRS have extended some filing deadline protections to benefit taxpayers required to disclose foreign-based financial account balances.

FBAR remains a complicated reporting obligation and the IRS will cross-reference FBAR information with other tax filings, as well as information disclosures from other sources such as foreign financial institutions. This makes failure to accurately report assets on the FBAR potentially very costly for U.S. taxpayers, even with the extension provisions of the new regulations.

Listen as our experienced panel provides a comprehensive guide to completing the FBAR forms.

I. What triggers FBAR filing requirements

A. Entity ownership

B. $10,000 threshold

C. When are a company's officers personally responsible?

II. Information to report on the FBAR vs. Form 8938

A. Ownership accounts, accounts with signature authority, combined report accounts

B. Form 8938 and associated IRS forms for foreign ownership/transactions

III. Update on enforcement and new developments

A. FBAR and Form 8938 penalties

B. Willfulness standard and the non-willful certification

C. Avenues and procedures

D. Audits and examination

E. Civil vs. criminal sanctions

The panel will review these and other key issues:

• When can corporate officers' stake in foreign accounts trigger reporting responsibilities?
• What is the latest in the IRS and FinCEN enforcement activity?
• What are the options for companies required to file an FBAR and have not?
• How do Form 8938 filing requirements intersect with FBAR?

Learning Objectives

After completing this course, you will be able to:

• Describe Form 8938 filing requirements
• Ascertain the content of penalty waiver provisions and form requirements
• Determine the rules for identifying accounts to report
• Recognize the process for filing an extension, as well as a penalty waiver request

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of FBAR triggers, information to be remitted on FinCen Form 114, and the FBAR electronic filing process; familiarity with FBAR extensions and first-time filer penalty relief.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).