FBAR stands for “Foreign Bank Account Reporting”. Originally numbered as TDF 90-22.1, the FBARs current form number as revised a few years ago is currently form 114.
Who Needs To File Form 114 (FBAR)?
Form 114 is required to be filed by all US citizen, Green Card Holders and tax residents of the USA that meet the FBAR filing threshold requirement. This compliance form reports all foreign financial accounts (defined below) held by US taxpayers. The filing threshold is calculated by taking the total aggregate highest balance in all “foreign financial accounts”. If the total calculated exceeds $10,000, the taxpayer is required to file FBAR forms.
What Is A “Foreign Financial Account”?
A foreign financial account is defined as a “financial account” held outside of the USA. A financial account is defined in the instructions for form 114 as: