If you have a foreign financial account, or have signature authority over such an account, you must file Form TD F 90-22.1. That form is due on June 30th. Unlike every other IRS deadline, this one is a receipt deadline. That means you should put your TD F 90-22.1 in the mail today.
Who needs to file? If you take the sum of the maximum balance of your foreign account(s) and it adds up to $10,000 or more, you must file. Foreign accounts include the obvious (bank accounts, credit cards, etc.) and some less obvious accounts such as online gambling accounts. If you’re an accounts payable clerk and you sign the checks for a corporate foreign bank account, you must file the form.
The penalties are extremely steep for not filing. Non-willful violations start at $10,000; willful violations are the greater of half the balance in the account or $100,000. You can also go to ClubFed for this.
And don’t forget to spend $5.10 at the post office to mail the form using certified mail, return receipt requested. It’s your proof of timely filing.
Tags: FBAR