Form 114: Report of Foreign Bank and Financial Accounts (FBAR)

Form 114 is used to report certain foreign financial accounts when applicable foreign account reporting requirements are met.

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Introduction

Form 114, commonly known as the FBAR, is an electronic report used by certain U.S. persons to report financial accounts held outside the United States. The report is generally required when the combined value of applicable foreign financial accounts exceeds the applicable reporting threshold during the reporting period.

Form 114 is separate from a federal income tax return. The filing requirement generally depends on the type of foreign financial accounts, the taxpayer’s status, and the value of the accounts during the reporting period.

What Is Form 114?

Form 114 is the Report of Foreign Bank and Financial Accounts, commonly referred to as the FBAR. It is used to report certain financial accounts located outside the United States.

Form 114 may include information such as:

U.S. person information
Foreign bank accounts
Foreign securities accounts
Other reportable financial accounts
Financial institution information
Account numbers
Account ownership information
Maximum account values
Joint account information
Other applicable account information

The specific reporting requirements depend on the type of account, ownership arrangement, and circumstances of the U.S. person.

Who Uses Form 114?

Form 114 may be required for certain U.S. persons who have a financial interest in or signature or other authority over qualifying foreign financial accounts. The reporting rules can apply to individuals, businesses, trusts, estates, and other U.S. persons when applicable requirements are met.

Form 114 may be relevant to:

U.S. citizens
U.S. residents
Certain domestic businesses
Certain trusts and estates
U.S. persons with foreign bank accounts
U.S. persons with foreign investment accounts
U.S. persons with signature or other authority over certain foreign accounts

Not every foreign financial account requires an FBAR. The filing requirement depends on the type of account, the taxpayer’s relationship to the account, and the applicable reporting threshold.

What Information Is Needed?

The information needed to complete Form 114 generally includes information about the U.S. person, foreign financial institutions, account numbers, account ownership, and the maximum value of each reportable account.

You may need:

U.S. person identification information
Social Security number or other taxpayer identification information
Foreign financial institution names
Foreign financial institution addresses
Account numbers
Account types
Account ownership information
Maximum account values
Joint account information
Information about accounts over which you have signature or other authority
Supporting bank and financial records

Keep financial statements and other records supporting the information reported on Form 114.

How to Fill Out/Complete Form 114

Form 114 is completed electronically and generally requires information about the filer and each reportable foreign financial account. The information should be based on account statements, financial records, ownership documents, and other reliable records.

Report each applicable account and provide the requested information. The number of accounts and the type of account information required will depend on the taxpayer’s foreign financial activities.

Filer Information

The filer information generally identifies the U.S. person submitting the FBAR. This can include the person’s name, address, taxpayer identification information, and other identifying details.

Enter the information carefully and make sure it agrees with the taxpayer’s records. Review the identifying information before submitting the report.

Foreign Financial Account Information

The foreign financial account section generally provides information about each reportable account held outside the United States.

Provide the applicable financial institution name, address, account number, account type, and other requested information. Use current account records to make sure the information is accurate.

Account Ownership

Account ownership information generally identifies the relationship between the U.S. person and the foreign financial account. This may include direct ownership, joint ownership, or other applicable interests.

Review account documents and ownership records to determine how each account should be reported. Make sure the ownership information is consistent with the financial institution’s records.

Signature or Other Authority

Certain U.S. persons may have reporting obligations for foreign accounts even when they do not personally own the account. Signature or other authority over a foreign financial account may be relevant to the reporting requirements.

Review the person’s relationship with each foreign account and determine whether the applicable reporting requirements are met. Maintain documentation supporting the nature of the authority.

Maximum Account Value

The report generally requires the maximum value of each applicable foreign financial account during the reporting period.

Review account statements and other financial records to determine the highest applicable value during the year. Use reasonable and consistent records when determining the amount reported.

Joint Accounts

Jointly owned foreign financial accounts may require additional information about the account and the persons who share ownership.

Provide the applicable account and ownership information and review the reporting requirements that apply to joint accounts. Keep records identifying the account owners.

Additional Accounts

If a U.S. person has multiple reportable foreign financial accounts, information may be required for each applicable account.

Review all foreign bank, securities, and other financial accounts to identify accounts that may be subject to reporting. Avoid overlooking smaller accounts when determining whether the applicable reporting requirements are met.

Final Review

Review Form 114 after completing all applicable information. Check the filer information, foreign financial institution information, account numbers, account types, ownership information, signature or other authority information, maximum account values, joint account information, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. U.S. persons should retain Form 114, foreign account statements, financial institution records, ownership documents, account value records, correspondence, and other supporting financial documents with their tax records.

Common Mistakes

Common Form 114 mistakes can result from overlooking foreign accounts, incorrectly determining account values, or misunderstanding whether a person has a reportable financial interest or authority over an account.

Some common issues include:

Failing to recognize that an FBAR may be required
Overlooking a foreign financial account
Reporting an incorrect account number
Reporting an incorrect financial institution
Reporting an incorrect account type
Using an incorrect maximum account value
Failing to consider joint accounts
Overlooking accounts over which the taxpayer has signature or other authority
Providing incomplete account information
Failing to report all applicable accounts
Using inconsistent information between financial records and the FBAR
Failing to retain supporting account records

Review Form 114 carefully before submitting it and make sure the information agrees with the taxpayer’s financial records.

Related IRS Forms

Form 114 may be associated with other federal tax forms and foreign financial reporting requirements. A taxpayer may have more than one reporting obligation depending on the type and value of foreign assets.

Commonly related forms may include:

Form 1040, U.S. Individual Income Tax Return
Form 8938, Statement of Specified Foreign Financial Assets
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Foreign Branches
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships
Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner

The forms required will depend on the taxpayer’s foreign accounts, assets, ownership interests, income, and individual circumstances.

Where to File or Submit

Form 114 is generally submitted electronically through the designated electronic FBAR filing system. It is separate from the taxpayer’s federal income tax return and is not generally attached to Form 1040 or another federal income tax return.

The filing deadline and any applicable extensions should be reviewed for the reporting period. Keep confirmation of the electronic submission with the taxpayer’s records.

Current IRS Form & Instructions

Use the Form 114 filing requirements and instructions that apply to the reporting period. Foreign account reporting rules and electronic filing procedures may be updated over time.

The general information on this page is intended to remain useful across multiple years. Specific reporting thresholds, filing deadlines, definitions, exemptions, electronic filing procedures, and other details may change and should be reviewed for the applicable reporting period.

Important Information / Disclaimer

This Form 114 guide is provided for general informational purposes only and is not tax, legal, or accounting advice. Foreign financial account reporting requirements can be complex, and the filing requirements may depend on the taxpayer’s status, account ownership, account authority, account type, account value, and other circumstances.

Taxpayers should review the requirements applicable to the reporting period and consider consulting a qualified tax professional when foreign account reporting requirements are unclear or involve complex ownership or financial arrangements. This page is intended as a general educational guide and should not be used as a substitute for reviewing the applicable forms, instructions, and reporting rules.