TD F 90-22.1 Form: What Replaced It for FBAR Filings?

Form TD F 90-22.1 is an obsolete government document previously used to file a Report of Foreign Bank and Financial Accounts (FBAR). This paper form has been replaced by the mandatory electronic submission of FinCEN Form 114 through the Bank Secrecy Act (BSA) E-Filing System. This change modernized data collection for the Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury bureau that manages these filings. The report’s purpose remains the same: to track foreign accounts to combat tax evasion and other financial crimes.

Who Must File an FBAR

The requirement to file an FBAR applies to any “U.S. person” with a financial interest in or signature authority over foreign financial accounts if the aggregate value exceeds $10,000 at any point during the calendar year. The term “U.S. person” includes U.S. citizens, residents, and entities like corporations, partnerships, and LLCs created in the United States. Trusts and estates formed under U.S. law are also included.

A foreign financial account is any account located outside the United States, including bank accounts, brokerage accounts, and mutual funds. The determining factor is the institution’s geographic location, not the account’s currency. An account at a foreign branch of a U.S. bank is considered a foreign account for FBAR purposes.

The $10,000 limit applies to the aggregate value of all foreign accounts combined. You must sum the maximum value of each account during the year, and if the total exceeds $10,000, every foreign account must be reported, regardless of its individual value.

A financial interest exists if you are the owner of record or hold legal title. Signature authority is the ability to control the account’s assets by communicating directly with the financial institution. For example, a corporate officer who can authorize payments from a company’s foreign account may have a filing obligation even without owning the funds.

Information Required for the FBAR

For the filer, you must provide your legal name, U.S. taxpayer identification number (such as a Social Security Number), and complete mailing address.

For each foreign account, you will need to collect several key details, including:

• The full name of the financial institution where the account is held, along with its mailing address.
• The account number or other designation assigned to the account.
• The maximum value of the account during the calendar year, converted into U.S. dollars.

The currency conversion should be made using the Treasury’s Financial Management Service exchange rate for the last day of the year. If a Treasury rate is unavailable, another verifiable exchange rate may be used, provided its source is documented. Part I of the form captures filer information, while subsequent parts are used to list the details for each foreign account.

How to File the FBAR

The FBAR must be filed electronically using the BSA E-Filing System, which is managed by FinCEN. To begin, a filer must visit the FinCEN website and can either register for an account or choose to file as an individual without registering. The system is designed for individual filers and third-party preparers.

The annual deadline for filing the FBAR is the same as the federal income tax return deadline, typically April 15th. However, filers are granted an automatic extension to October 15th, and no special request is needed to receive this extension.

Once the FBAR is submitted, the filer will receive a confirmation email that includes a unique BSA Identifier (BSA ID). This identifier is the official receipt and should be retained as proof of filing.

Penalties for Failure to File

The consequences for failing to file a required FBAR are categorized based on whether the violation was non-willful or willful. For a non-willful failure to file, a civil penalty of up to $10,000 per report may be assessed. The IRS has discretion to waive the penalty if the filer can demonstrate the failure was due to reasonable cause.

When a failure to file is determined to be willful, the penalties are substantially higher. The civil penalty for a willful violation can be the greater of $100,000 or 50 percent of the total balance of the foreign accounts at the time of the violation. These penalties can be applied for each year of non-compliance.

Beyond civil penalties, willful violations can also lead to criminal prosecution. Criminal penalties may include fines of up to $250,000 and imprisonment for up to five years. If the violation occurs with other crimes, such as tax evasion, penalties can increase to a $500,000 fine and ten years in prison.

For individuals who are delinquent in their FBAR filings, the IRS offers several voluntary disclosure programs. The Streamlined Filing Compliance Procedures are designed for taxpayers whose non-compliance was non-willful. These programs provide a pathway to get back into compliance with potentially reduced penalties. Seeking advice from a qualified tax professional is a common step for those considering these options.