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The IRS new form FBAR requirements refer to the requirements of a Foreign Bank and Financial Account Reporting form. The actual form number you will be working with is TD F 90-22.1. Under current U.S. law, any person living in the U.S. must file this form if he or she has a financial interest or signature authority in a foreign financial account that has an aggregate value of over $10,000 at any time during the course of a year. This does not only include U.S. citizens but also all residents, domestic partnerships, domestic corporations or domestic estates.

This law applies to any account held outside the 50 states which includes geographic areas outside the mainland states that might still be owned or partially run by the government. This includes commonwealth islands like Puerto Rico as well as the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands.

You are required to file this form, even if you generate no interest or dividend income. The FBAR form is due by the 30th of June every year following the year that the account holder reaches over $10,000. There is no extension available for filing this form so it is imperative that you fill out before the deadline. Instead of waiting for an extension, which is not possible, it is suggested that you fill out all available information and then send an amendment later on, when necessary.

Bear in mind that the FBAR form is not supposed to be filed with a person's federal tax return. Any delay should be accompanied by an explanation explaining why the form wasn't released on time. There can be strict civil penalties for not filing this form, and these penalties can be charged up to 6 years following the date of the violation. You should always keeps records for foreign accounts, for at least a period of five years. Unfortunately, the failure to provide and maintain these records could result in civil or even criminal penalties.

What if you own a corporation that owns a foreign company that has foreign accounts? Even in this case, where the foreign owners are filing the FBAR themselves, you will still have to file if you own over 50% of the total value. Don't worry that you won't be able to find or understand the FBAR form. You can download a PDF copy of the document and its instructions from the IRS website. You can also send questions to the IRS via email or by contacting them directly by phone.

Because of the lowering in value of the U.S. dollar, many Americans are holding some of their funds in offshore accounts. However, you really have to do research to ensure that you are following tax regulations as regards reporting these accounts, as the U.S. government is really cracking down on abuses of this system, given the recent financial crisis. For more information you can visit the QWealthReport.com blog which gives its readers five non-reportable tax shelters for US citizens.