By: Amanda Wilson
A taxpayer that has a foreign bank account is required to file a special form, the Report of Foreign Bank and Financial Accounts, disclosing information about the account. Failure to file this form, which is commonly referred to as an FBAR, can result in significant penalties. A person that fails to properly file an FBAR can be subject to a penalty up to $10,000 per violation. This penalty can be increased to the greater of $100,000 or 50% of the balance in the account at the time of the violation if the violation was willful.