Clarification Continues on Foreign Bank Account Reporting(1)

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U.S. persons who have an interest in or signatory authority over a foreign account with a value over $10,000 are required to file a Foreign Bank Account Report (“FBAR”). Since the 1970s, FBARs have been required, but due to poor enforcement many people and tax advisors remain unaware or turn a blind eye to their FBAR obligation. The unfamiliarity is surprising because the individual income tax return, Form 1040, highlights the duty of taxpayers to file the FBAR on Schedule B, Interest and Ordinary Dividends, line 7a.