The FBAR can look like a routine Treasury filing. It is anything but that for people with money held overseas. U.S. citizens, residents and certain U.S. entities may have to report foreign financial accounts when their combined value crosses $10,000 at any point in a calendar year. The report is filed separately from the federal tax return. It goes electronically to the Financial Crimes Enforcement Network, or FinCEN, using FinCEN Form 114.
That $10,000 figure is where many people misunderstand the rule. It is not a $10,000 limit for each account. The government looks at the aggregate value of reportable foreign accounts. Several smaller accounts can therefore push someone over the filing threshold even when none of them individually contains $10,000. The rule can also apply when a person has signature authority over an account without owning the funds.
