Bank Secrecy Act: Difference between revisions

U.S. citizens and residents with a financial interest in or authority over foreign bank accounts or "foreign financial accounts" with an aggregate value of $10,000 are required to file a Foreign Bank Account Report (FBAR) with the [[U.S. Treasury]] by October 15 every year. It is identified as FinCEN Form 114 (formerly Treasury Department Form 90-22.1).<ref>{{cite web|url=https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR|title=Report of Foreign Bank and Financial Accounts (FBAR)|access-date=2022-07-11|archive-date=2016-05-16|archive-url=https://web.archive.org/web/20160516010101/https://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR|url-status=dead}}</ref><ref>IRS [https://www.irs.gov/pub/irs-pdf/p4261.pdf Publication 4261]</ref> Additionally, they must report the accounts on Schedule B of the [[Form 1040]] tax form. Proponents of FBAR argue that it helps the United States deter financial crimes and encourage whistle-blowing for financial crimes<ref>{{Cite web |title=Bittner v. United States (BRIEF OF AMICUS CURIAE NATIONAL WHISTLEBLOWER CENTER SUPPORTING RESPONDENT） |url=https://www.supremecourt.gov/DocketPDF/21/21-1195/242647/20221006180654090_NWC%20Brief.pdf |access-date=23 November 2022 |website=Supreme Court of the United States}}</ref>, while Critics argue that FBAR wastes time and money, "perversely discouraging compliance" without focusing "likely criminal activity".<ref>{{cite journal |last=Christians |first=Allison |title=Paperwork and Punishment: It's Time to Fix FBAR |date=October 13, 2014 |journal=Tax Notes International |volume=73 |ssrn=2510544 }}</ref>