Value Proposition: - The compliance of this form is required by Section 361 (b) of the US PATRIOT Act and Section 5314 of Bank Secrecy Act. Sec 5314 authorize the Secretary to require residents or the US Citizens to keep records and/or file reports containing transactions with a foreign financial agency. FBAR is not a tax return but a report filed with the Secretary stating that the person filing has a financial interest in or signature authority over financial accounts in a foreign country with an aggregate value exceeding $10,000 at any time during the calendar year. Filing an FBAR is a two-part reporting process. Form 1040 Schedule B Part III indicates the taxpayer to say Yes or No in the appropriate box.  Form 1040 then refers the taxpayer to Form 90-22.1, the FBAR which provides that it should be used to report a financial interest in or authority over bank accounts, securities account or other financial accounts in a foreign country. The BSA provides for both criminal and civil sanctions for failing to file an FBAR. Under 31 U.S.C 5322 criminal violations of 5314 are punishable by a fine of not more that $250,000 or 5 years in prison or both. Where the failure to file FBAR is part of a pattern of illegal activity, the fine is up to $500,000 and up to 10 years in prison or both.

Beneficiaries of the service: - Taxpayer’s with financial interest in a foreign bank account and having more than $10,000 at any time during the calendar year. If the account is jointly held each stake holder needs to complete the form individually.

Scope of Work: - This form can be prepared using the tax preparation software Lacerte. We can do a mail merge template depending on the volume of work. If using the Tax software we will have to create client if not already existing in the system. We can also use IRS website as it provides the fill-in forms.

Pricing: - Most of the firms charge the client on the time incurred in preparation of the form.

Number of hours expended by us: - This form can be completed in 0.8 hours and the reviewer can do a review in about 0.2 hours.

SLA for service delivery: - Ideally should be:-

24 hours-During Non-busy season 48 hours-During Busy season

Important definitions:- US Person:  US citizen, US resident, US domestic partnership, US Domestic Corporation, or US domestic estate or trust. Financial Interest:  an account in which a person is the owner of record, or an account in which a US person has legal title, regardless of whether the account is maintained for the benefit of the US person or for the benefit of others, including non-US persons.  If the account is maintained in the name of two persons jointly, or if several persons each own a partial interest in an account, each US person has a financial interest in the account.  A financial interest also includes:

Signature Authority over a Financial Account:   When a person can control the disposition of money or other property in the account via his/her signature (or together with another person) Financial Account:  includes any account maintained with a financial institution, or with any person engaged in the business of a financial institution, including savings, demand, checking, deposit, time deposit, bank securities, securities derivatives, or other financial instrument accounts, as well as any account in which assets are held in a commingled fund, and where the account owner holds an equity interest in the fund.

Foreign countries:  All geographic areas located outside the US, Guam, Puerto Rico and the Virgin Islands.  Accounts maintained at an affiliate of a US bank or other financial institution that is located in a foreign country must be reported.  However, accounts maintained with a branch, agency, or other office of a foreign bank or other financial institution that is located in the US, Guam, Puerto Rico or the Virgin Islands need not be reported.