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    #1

    FBAR TO Form 114

    I have a couple of clients who fill out the FBAR every year. I help them, and I ship it for one of them because they are in Romania.
    Am I reading this correctly to say that they must all be e-filed? If I assist my clients, must I e-file the new form 114 and register with FinCEN?
    Why can't I find any of this information in TTB?

    Report of Foreign Bank and Financial Accounts (FBAR)

    If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing electronically a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). See the ‘Who Must File an FBAR’ section below for additional criteria.

    Current FBAR Guidance

    FinCEN introduces new forms

    On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website. The system allows the filer to enter the calendar year reported, including past years, on the online FinCEN Form 114. It also offers an option to “explain a late filing,” or to select “Other” to enter up to 750-characters within a text box where the filer can provide a further explanation of the late filing or indicate whether the filing is made in conjunction with an IRS compliance program.

    On July 29, 2013, FinCEN posted a notice on their internet site that introduced a new form to filers who submit FBARs jointly with spouses or who wish to have a third party preparer file their FBARs on their behalf. The new FinCEN Form 114a, Record of Authorization to Electronically File FBARs, is not submitted with the filing but, instead, is maintained with the FBAR records by the filer and the account owner, and made available to FinCEN or IRS on request

    Report of Foreign Bank and Financial Accounts (FBAR) | Internal Revenue Service
    http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR
    You may be required to report yearly to the IRS foreign bank and financial accounts (FBAR) exceeding certain thresholds.?
    Last edited by Possi; 02-23-2014, 07:00 AM. Reason: posting the link to irs
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey
    Tags: None
    #2
    Dealing with upcoming FBAR filing

    Does anyone have an answer to this prior query?

    I will need to prepare two separate FinCEN Forms 114 (old FBAR), and it is pretty clear the forms now MUST be sent electronically.

    For all intents and purposes, the new FinCEN Form 114 appears quite similar to the older (Treasury) Form 90-22.1 .

    There only appears to be an option for the individual to transmit their own (as a PDF??), or for me to register/enroll as a "Registered BSA E-Filer" which is a path I would prefer not to travel.

    Suggestions??

    FE

    Comment

      #3
      My understanding is that electronic filing is the only option for the FBAR now. Personally, I've always avoided the FBAR beyond filling the client's name, SS#, and birth date. Then I gave it to them to complete and submit, along with the appropriate warnings about the penalties.

      Now that it's required electronically, I just send them the link and follow up to be sure they completed it.
      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

      Comment

        #4
        BSA response

        Originally posted by JohnH View Post
        My understanding is that electronic filing is the only option for the FBAR now. Personally, I've always avoided the FBAR beyond filling the client's name, SS#, and birth date. Then I gave it to them to complete and submit, along with the appropriate warnings about the penalties.

        Now that it's required electronically, I just send them the link and follow up to be sure they completed it.
        Received from BSA official this date:

        "As of February, 2014, FinCEN has streamlined the process for electronic filing for individuals filing an FBAR. The new process removes the requirement for registering and creating an account on the BSA E-Filing System. This process is available for individuals who are required to file the FBAR. Businesses including CPAs, must still register and create an account as an Institution on the BSA E-Filing System prior to downloading, completing and submitting FBARs on behalf of their business or clients.

        The FBAR can only be filed through the BSA E-Filing System."

        Apparently there is a Form 114a ( http://www.fincen.gov/forms/files/FB...4aRecordSP.pdf ) where the client can authorize the accountant to efile the form for them, but that still requires the accountant to register/create an account with BSA even to file those Forms 114.

        So much for progress. . . . .

        FE

        Comment

          #5
          Originally posted by FEDUKE404 View Post
          Apparently there is a Form 114a ( http://www.fincen.gov/forms/files/FB...4aRecordSP.pdf ) where the client can authorize the accountant to efile the form for them, but that still requires the accountant to register/create an account with BSA even to file those Forms 114.

          So much for progress. . . . .

          FE
          If we have the client in our office sitting besides us, can we click the <SUBMIT> button to e-file the Form 114 for them?

          Or perhaps we have to give the mouse to the clients and tell them to click the <SUBMIT> button by themselves?

          Comment

            #6
            Originally posted by AccTaxMan View Post
            If we have the client in our office sitting besides us, can we click the <SUBMIT> button to e-file the Form 114 for them?

            Or perhaps we have to give the mouse to the clients and tell them to click the <SUBMIT> button by themselves?
            If that were my office, I wouldn't be filling in the form for the client in the first place. But assuming I did decide to do something that risky, then yes I can assure you I'd hand the mouse to the client and tell them to click (SUBMIT>. I might even video the event just as a "CYA" measure.
            "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

            Comment

              #7
              Owner kinda files the FBAR

              Originally posted by AccTaxMan View Post
              If we have the client in our office sitting besides us, can we click the <SUBMIT> button to e-file the Form 114 for them?

              Or perhaps we have to give the mouse to the clients and tell them to click the <SUBMIT> button by themselves?
              I do not know the answer to that question, especially if the BSA folks are using cookies and/or tracking your ISP address. Earlier today the BSA folks were pretty adamant that the only two choices were to have the individual file his/her own Form 114 or to have me set up an account (as an "institution") allowing me to file their forms with use of related Form 114a.

              In my case, both clients involved are several hundred miles away from my office.

              You may wish to look at the electronic version which now needs to be used. Perhaps have the client bring lunch also??

              Link to overall instructions. Pay particular attention to Page 8 !!

              http://bsaefiling.fincen.treas.gov/docs/FBAR_EFILING.pdf


              (Actual PDF Form 114) -->>> https://bsaefiling1.fincen.treas.gov...ame=NFFBAR.pdf
              It should be noted this "generates" the PDF which then can be electronically filed as an attachment.

              Whether there is a real-world end run to this dilemma, short of the weak "well, I've done it that way without problems" approach, remains unknown. The BSA folks can assess penalties coming out the yazoo, and I do not care to do anything to invoke their ire! I have made other inquiries as to potential solutions. Perhaps other TTB folks have already (ahem!) submitted Forms 114 and know the answers.

              FE

              Comment

                #8
                I just filed some of these yesterday. Be aware that you are required to have the clients written permission to file the return. Of course the manual doesn't tell you what that consists of. I used a Form 2848. The process to get registered isn't terribly hard although the site is a bit clunky and the forms are not designed very well. I only do 1 to 3 of these per year but I would hate to abandon the mostly elderly clients that need to file to their own devices.
                In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
                Alexis de Tocqueville

                Comment

                  #9
                  Registration to efile FBAR

                  Originally posted by DaveO View Post
                  I just filed some of these yesterday. Be aware that you are required to have the clients written permission to file the return. Of course the manual doesn't tell you what that consists of. I used a Form 2848. The process to get registered isn't terribly hard although the site is a bit clunky and the forms are not designed very well. I only do 1 to 3 of these per year but I would hate to abandon the mostly elderly clients that need to file to their own devices.
                  One would assume that Form 114a would suffice to provide written permission of client?
                  http://www.fincen.gov/forms/files/FBARE-FileAuth114aRecordSP.pdf


                  I will give further consideration to registering to e-file, based upon your comments. Both clients are reasonably young, but they also have several foreign investment accounts and there are many places they could potentially make a data entry error. I'm sure they will be quite pleased to find out they can't just have me prepare the form as I have done in the past, mail it to them for a signature, and then snail mail to the authorities.

                  Thanks for the input.

                  FE

                  Comment

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