Foreign bank accounts
Sometimes, it just makes sense to open a bank account in a foreign country. If you’re working on a temporary special project, or are dealing with a fundraising campaign in a foreign country, it can be easier to open an account in the country you’re operating in. If your organization decides to open a foreign bank account there are some things that you need to be aware of.
If you operate a bank account in a foreign country, as a nonprofit you will have to complete and file the Foreign Bank and Financial Accounts (FBAR) form, which requires you to fill out the Financial Crimes Enforcement Network (FinCEN) form 114 (previously TD F 90-22).
Per the IRS, a US person is required to file a FBAR if:
- The individual with United States citizenship has or had a financial interest in or signature authority over at least one financial account located outside of the United States; and
- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year being reported.
FBARs are filed separately from other IRS returns and are due by June 30th. The IRS does not offer extensions to this deadline (even if your tax returns are extended). Penalties can be steep for those who do not file the FBAR, and can result in a maximum $10,000 fee for any person who does not comply with filing requirements. Willful refusing to file an FBAR can result in a fee of $100,000 or more.
You can fill out the FBAR online at the Department of Treasury’s Financial Crimes Enforcement Network Website at http://bsaefiling.fincen.treas.gov/main.html.
Find more information by visiting the IRS website at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR
View form 114 (previously TD F 90-22) at http://www.fincen.gov/forms/files/FBARE-FileAuth114aRecordSP.pdf
Marci Cosby, Support Center Specialist with Jitasa