As a reader of my posts on TaxConnections blog, you probably know by now that if you have a financial interest in or signature authority over a foreign financial account, exceeding $10,000 at any time during the calendar year, the Bank Secrecy Act requires you to report the account to the Internal Revenue Service.

On September 30th, 2013, the Financial Crimes Enforcement Network (FinCEN) made a very important change to the FBAR form which will effect its filing for 2014.

What Are The Changes:

• The FinCEN Form 114 supersedes TD F 90-22.1 as the official FBAR form.

• The new FinCEN Form 114 is only available online on BSA E-Filing System website.

• The system allows the filer to enter the calender reported, including past years on the online form.

• The online form offers an option to explain a late filing.

• It also lets you indicate if a filing is being made in conjunction with an IRS compliance program.

• If you are filing FBAR with your spouse jointly or if you wish to have a third party preparer file your FBARs on your behalf, you can use the new FinCEN Form 114a. This form is not filed with the Form 114 but maintained with the FBAR records by the filer.

Website: BSA E-Filing System

• The taxpayer has to go on the website to create an account on the BSA E-Filing System.

• Or the taxpayer can designate their EA, CPA or attorney to file on the BSA website on their behalf.

Becoming a BSA Filer:

• An Enrolled Agent, CPA or Attorney can become a designated third-party filer.

• The EA, CPA or attorney must make sure they have documented authority from the tax payers required to file to sign and submit FBARs on their behalf through the BSA E-Filing System.

• If such authority has been provided, the EA, CPA or can file the FBARs through the single BSA account established for them.

In accordance with Circular 230 Disclosure