Businesses, too, have to report FBAR (Foreign bank account reporting). Do you have a business and want to know everything about Consolidated FBAR for businesses? Then, wait and read until last to get all the facts related to Consolidated FBAR (Foreign bank account reporting) for your business at USTAXFiling!
People overseas are not the only ones who have to file the FBAR (Foreign Bank Account Reporting). US companies and businesses have to file them, which might be challenging for larger corporations. Fortunately, the Consolidated FBAR (Foreign Bank Account Reporting) simplifies everything for foreign financial accounts.
What Is a Consolidated FBAR (Foreign Bank Account Reporting)?
Just like people, Large corporations in the USA must file the FBAR (Foreign bank account reporting) to report on financial properties abroad and foreign financial accounts. But what is a consolidated FBAR (Foreign Bank Account Reporting)? Both parent and subsidiary companies have FBAR filing needs that become challenging when there are many subsidiaries or levels of ownership. Due to this, the IRS (Internal Revenue Service) allows consolidated FBAR filing, which means that the parent company’s filing covers its own and subsidiary filing obligations.
When it comes to tax filing the consolidated FBAR (Foreign bank account reporting), you must keep in mind the basic needs for foreign bank account reporting. These things include:
- The balance of the foreign accounts has exceeded $10,000 at any point during the financial year
- You are a US individual who held a signatory authority or a financial interest in at least one foreign account
Who Is Eligible for the Consolidated FBAR (Foreign Bank Account Reporting)?
If an organization that files the Foreign bank account reporting has more than 50 percent ownership over other companies, the parent company is determined to have a financial interest in the accounts of the subsidiary companies. The percentage of profits, voting share, combination, or capital might represent 50 percent ownership. To become eligible for the consolidated FBAR (Foreign bank account reporting), the subsidiary company should be the owner of one of the foreign financial accounts (not having a filing needs as a pass-through). It might build an overlap of having accounts being reported twice and must be noted on the actual Form.
What Do You Need for theForeign Bank Account Reporting Consolidated Report?
For many companies, the foreign financial accounts that should be reported on the FBAR (Foreign Bank Account Reporting) consolidated report include depository accounts, bank accounts, annuities with cash value, brokerage accounts, insurance policies, and securities.
What Do You Need to Know About Income Tax Filing?
All of the needs for FBAR (Foreign bank account reporting) are the same, whether you file as a business entity or an individual. You may file the FBAR (Foreign bank account reporting) form, also called FinCEN Form 114, and the informational filing may be submitted to the Department of the Treasury, US. The Form might capture information related to the maximum balances, financial institution, account numbers, type of account, and whether you have signatory rights or financial interest over the account.
The income tax filing deadline may be the same as the tax day (15th April), but US expats staying overseas on this day may get an automatic two-month extension until 15th June. Also, you can request an extension till 15th October.
It is necessary to note that the charges for failing to file or late filing to file may be quite steep, so ensuring you adhere to the deadline is necessary. If you didn’t know you have to file and you are far behind, the IRS (Internal Revenue Service) Streamlined Filing Procedures program is the best option to catch up without being charged- as long as your failure to file was non-willful, and you may come forward before the IRS (Internal Revenue Service) realizes you haven’t been filing.
Need Assistance With Your Foreign Bank Account Reporting?
Our team of expat expert IRS and CPAs enrolled agents will assist you in finalizing your consolidated FBAR (Foreign Bank Account Reporting) ahead of the deadline or assist you in getting caught up on previous FBAR (Foreign Bank Account Reporting). Our USTAXFiling experts are here to assist you with your consolidated FBAR (Foreign bank account reporting). They have years of rich experience and have all the updates related to Consolidated FBAR for your business. If you need any assistance with income tax filing, get in touch with us right away at USTAXFiling Expat Tax Services!