Glossary term
FinCEN Form 114
FinCEN Form 114 is the electronic FBAR filing used to report certain foreign financial accounts to the U.S. Treasury.
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What Is FinCEN Form 114?
FinCEN Form 114 is the electronic form used to file the Report of Foreign Bank and Financial Accounts, commonly called the FBAR. It is filed with the Financial Crimes Enforcement Network, not attached to a federal income tax return.
The form generally applies to U.S. persons with a financial interest in, or signature or other authority over, foreign financial accounts when the aggregate value of those accounts exceeds the reporting threshold at any time during the calendar year.
Key Takeaways
- FinCEN Form 114 is the FBAR.
- It reports certain foreign financial accounts to the U.S. Treasury.
- The filing is electronic through FinCEN's BSA E-Filing system.
- FBAR is separate from income tax reporting, though the topics can overlap.
How FinCEN Form 114 Works
A filer reports foreign accounts such as bank accounts, securities accounts, and certain other financial accounts when the FBAR rules apply. The form asks for information about the filer, the account, the foreign financial institution, and the maximum account value during the year.
The form is part of anti-money-laundering and financial transparency reporting. It is not used to calculate income tax, but foreign accounts may also produce income that belongs on a tax return.
FBAR Versus Tax Return Reporting
Item | FinCEN Form 114 | Income Tax Return |
|---|---|---|
Filed with | FinCEN through BSA E-Filing | IRS |
Main purpose | Foreign account reporting | Tax reporting and calculation |
Attached to Form 1040? | No | Yes, return forms and schedules are attached |
Income reported? | Account information, not income calculation | Interest, dividends, gains, and other taxable income |
What to Watch
FBAR filing can be missed because the account may not generate much income. The reporting trigger is based on account value and authority, not simply on taxable income. Joint accounts, business accounts, and accounts over which someone has signature authority can all require attention.
Penalties can be significant, so taxpayers with foreign accounts often need to coordinate FBAR reporting with FATCA, Form 8938, foreign tax credits, and ordinary income tax reporting.
The Bottom Line
FinCEN Form 114 is the electronic FBAR filing for certain foreign financial accounts. It is separate from a tax return, but it often belongs in the same compliance review for U.S. persons with foreign accounts.