Free 114A Form in PDF

Instructions on Writing 114A

Filing the Form 114a is a crucial step for individuals with the obligation of reporting foreign bank and financial accounts. This form serves as the record of authorization to electronically file FBARs - a requirement for U.S. persons who have financial interests in or authority over foreign financial accounts exceeding certain thresholds. It must be accurately completed and retained for your records, not sent to FinCEN, unless specifically requested. Here's how to fill it out.

1. Enter the owner's last name or the legal name of the entity in the space provided.
2. Fill in the owner's first name.
3. Provide the owner's middle initial (M.I.) if applicable.
4. If the FBAR is being filed jointly with a spouse, enter the spouse's last name.
5. Fill in the spouse's first name.
6. Provide the spouse's middle initial (M.I.) if applicable.
7. Declare the number of foreign bank and financial accounts being reported and the year ending December 31 for which the report is being filed. Place this information in the blank spaces provided.
8. The owner, or an authorized representative if an entity, must digitally sign or physically sign in the space provided for the owner's signature.
9. Enter the date of signing next to the owner's signature.
10. Fill in the owner's or entity's Tax Identification Number (TIN), selecting the applicable type (EIN, SSN/ITIN, or Foreign).
11. If filing jointly, the spouse must also sign the form (digitally or physically).
12. Enter the date next to the spouse's signature.
13. Fill in the spouse's Tax Identification Number (TIN), selecting the applicable type (EIN, SSN/ITIN, or Foreign).
14. In Part II, write the preparer's last name, first name, and middle initial.
15. Enter the Preparer's Tax Identification Number (PTIN) if available.
16. Provide the preparer's or preparer's employer's address, city, state, ZIP/postal code, and country.
17. List the preparer's or preparer's employer's name and Employer Identification Number (EIN) if employed.
18. The preparer needs to sign in the designated space to indicate they are authorized to file the FBAR as directed. Digital signatures are acceptable.

After completing the form, both the individual(s) granting authorization and the preparer should keep copies of the form and the FBAR filing for a period of 5 years. Remember, this form is for your records and should not be sent to FinCEN unless you are asked to provide it. Accurate record-keeping and proper filing are key responsibilities for those holding or managing foreign financial accounts.

What is Form 114a?

Form 114a is a document provided by the Department of the Treasury Financial Crimes Enforcement Network (FinCEN). It serves as a Record of Authorization to Electronically File FBARs (Foreign Bank and Financial Accounts Reports). This form allows individuals and entities to grant third-party preparers the authority to file FBARs on their behalf. It includes sections for account owner(s) information, authorization declaration, and third-party preparer details.

Who needs to complete Form 114a?

Form 114a needs to be completed by any individual or entity that has foreign bank and financial accounts and chooses to authorize a third party to file their FBAR electronically. This includes owners of single accounts, as well as spouses who are filing jointly.

Is it necessary to send Form 114a to FinCEN?

No, Form 114a should not be sent to FinCEN. Once completed and signed, the form is to be retained by the individual or entity and the authorized third-party preparer for their records. It must be kept for a period of five years, in case it is requested by legal authorities.

Can Form 114a be digitally signed?

Yes, both the account owner(s) and the authorized third-party preparer can digitally sign Form 114a. Digital signatures are accepted for both the authorization declaration by the account owner(s) and the confirmation of FBAR filing commitment by the authorized third-party preparer.

What is an FBAR and who is required to file it?

An FBAR, or Foreign Bank and Financial Accounts Report, is a report that U.S. persons must file to report foreign financial accounts exceeding certain thresholds. The FBAR is required if the total value of the person's foreign financial accounts exceeds $10,000 at any time during the calendar year. This includes bank accounts, brokerage accounts, mutual funds, trusts, or any other type of foreign financial accounts.

How does jointly filing FBARs work with Form 114a?

For accounts jointly owned by spouses, both spouses must complete and sign Form 114a if they choose to authorize a third party to file their FBAR jointly. Each spouse must provide their personal information, sign and date the form, and include their taxpayer identification numbers (TINs). In cases where one spouse is the third-party preparer, both spouses still need to complete the form in its entirety.

What happens if the preparer does not have a PTIN (Preparer Tax Identification Number)?

If the authorized third-party preparer does not have a PTIN, the relevant field in Form 114a (item 18) should be left blank. Even without a PTIN, the preparer can still sign the form, granting them authorization to file the FBAR on behalf of the individual or entity.

How long should I keep a completed Form 114a?

A completed Form 114a should be retained for a period of five years from the date of filing the authorized FBAR. This retention policy applies to both the account owner(s) and the third-party preparer. Keeping the form is crucial for verifying authorization and compliance with FBAR filing requirements.

Where can I find additional instructions for completing Form 114a?

Additional instructions for completing Form 114a can be found on the form itself and through the Financial Crimes Enforcement Network (FinCEN) website. Specific guidance on completing each part of the form, as well as details about registration and digital signature capability, are provided to ensure accurate and compliant authorization records.

When filling out the Form 114a, one common mistake is not ensuring that all personal information is accurate and complete. This includes the owner's last name, first name, and middle initial (M.I.) if applicable, along with the spouse's information if jointly filing an FBAR. Accurate information is crucial for the Financial Crimes Enforcement Network (FinCEN) to correctly associate the FBAR filing with the right individuals.

Another error frequently made is in the section concerning the number of foreign bank and financial accounts. Some individuals forget to enter the correct number of accounts they are reporting for the filing year. This oversight can lead to an incomplete filing, potentially causing issues with FinCEN for failing to report all foreign accounts.

Signatures are another area where mistakes are commonly found. The form allows for digital signatures, but often, filers overlook the need to sign the form entirely or improperly sign it. It's imperative that both the owner (and their spouse, if applicable) in Part I, and the preparer in Part II, appropriately sign the form to validate the information and authorization contained within it.

Date entries are a detail that is seldom incorrectly filled or left blank. The form requires the signing date next to the owner's and spouse's signatures in Part I, and also next to the preparer's signature in Part II. Entering the correct date is necessary to confirm the timeliness and relevance of the authorization given to file the FBAR.

Incorrect Taxpayer Identification Number (TIN) types are provided on occasion. Filers must specify the right TIN type for both the owner and spouse (if jointly filing) — SSN, ITIN, EIN, or Foreign TIN. Mistakes here could lead to processing errors, making it difficult for FinCEN to accurately identify the individual or entity responsible for the foreign accounts.

Lastly, many overlook the necessity to retain a copy of the completed Form 114a for their records. The instructions clearly state that this form should not be sent to FinCEN unless requested, but must be kept for a period of 5 years. Failure to retain these records could pose problems if FinCEN seeks to verify authorization or the details of the FBAR filing at a later date.

Form 114a, known as the Record of Authorization to Electronically File FBARs (Foreign Bank and Financial Accounts Report), is a crucial document for individuals and entities needing to report financial accounts held outside of the United States. Completing this form involves providing detailed information to authorize a third party to file the FBAR on your behalf. However, this form is often not the only document required in the process. Various other forms and documents can play important roles in ensuring compliance and thorough reporting.

• FinCEN Form 114: This is the actual FBAR filing submitted electronically to the Financial Crimes Enforcement Network. This form reports foreign financial accounts exceeding a certain threshold.
• Form 8938: Statement of Specified Foreign Financial Assets. Individuals must file this form with their income tax returns if they have certain foreign financial assets exceeding the reporting threshold.
• Form W-9: Request for Taxpayer Identification Number and Certification. This form may be required by the financial institution to verify the taxpayer identification number (TIN) of the account holder.
• Form W-8BEN: Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals). This form may be required if the account holder is not a U.S. person.
• Form 1040: U.S. Individual Income Tax Return. Individuals file this form to report their yearly income to the IRS. Information from foreign financial accounts may also be pertinent here.
• Form 3520: Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. This form may be necessary if the foreign accounts involve trusts or gifts.
• Form 5471: Information Return of U.S. Persons With Respect to Certain Foreign Corporations. Required for certain shareholders of foreign corporations to report their stake and financial information.
• Form 926: Return by a U.S. Transferor of Property to a Foreign Corporation. Filed when a U.S. person transfers property to a foreign corporation.
• Form TD F 90-22.1: This is the predecessor to FinCEN Form 114 and is no longer in use but may be relevant for understanding historical reporting requirements.
• Power of Attorney: This legal document authorizes another person to act on behalf of the individual in legal and financial matters, potentially relevant for preparing and filing FBARs.

Together, these documents ensure comprehensive reporting and compliance with U.S. tax law and regulations governing foreign financial accounts. Individuals and entities dealing with foreign financial matters should maintain meticulous records and possibly consult with a professional to ensure that all relevant forms are accurately completed and submitted in a timely manner. Coordinating these elements can be complex, so understanding the role of each form and document in the larger financial and legal landscape is essential.

The Form 8802, Application for United States Residency Certification, shares similarities with Form 114a in that both involve formal requests to government agencies and require detailed personal or entity information. While Form 114a allows individuals or entities to authorize a third party to file FBARs on their behalf, Form 8802 is used by taxpayers to request certification of residency in the U.S. for tax treaty benefits and international reporting. Both forms necessitate precise information about the individual or entity making the request, including taxpayer identification numbers and certifications of accuracy.

Form 2848, Power of Attorney and Declaration of Representative, also parallels Form 114a. It grants individuals the authority to designate a representative to handle their tax matters before the IRS. Similar to Form 114a’s authorization for third-party FBAR filing, Form 2848 allows taxpayers to specify which tax matters and specific years their representative can address. Each form mandates a declaration that the information provided is true and includes provisions for digital signatures.

The W-8BEN form, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, is comparable to Form 114a in its international context, addressing non-residents' and foreign entities' U.S. taxation aspects. Although serving different purposes—W-8BEN for tax withholding on U.S. source income and Form 114a for foreign account reporting—both require identification details and cater to a global audience, facilitating international compliance with U.S. regulations.

Form W-7, Application for IRS Individual Taxpayer Identification Number, shares the provision of taxpayer identification similar to Form 114a's identification requirements for FBAR filing. Both forms are essential for non-residents or those without a Social Security Number, ensuring they can comply with tax and financial reporting obligations in the U.S., thus participating in financial systems despite varying international statuses.

Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is akin to Form 114a in its involvement with foreign entities and financial accounts. Form 5472 focuses on the reporting of transactions between U.S. corporations or foreign corporations engaged in U.S. business and their related foreign shareholders. Similarly, both forms ensure transparency and compliance with U.S. financial regulations, aiming to mitigate tax evasion and money laundering.

Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, shares its international financial reporting focus with Form 114a. While Form 114a deals with foreign bank and financial account reporting, Form 3520's concern is the reporting of transactions with foreign trusts and the receipt of large foreign gifts, illustrating both forms' roles in monitoring international financial activities for tax compliance purposes.

The Schedule B (Form 1040), Interest and Ordinary Dividends, section regarding foreign accounts and trusts, provides a reporting requirement that complements the disclosure on Form 114a. Taxpayers use Schedule B to report interest and dividend income and answer questions about foreign bank and financial accounts, echoing Form 114a's purpose to inform about foreign financial interests, thereby ensuring comprehensive reporting of overseas financial activities in tax filings.

Finally, Form 8938, Statement of Foreign Financial Assets, has objectives similar to those of Form 114a, with both aiming at disclosing foreign financial assets to prevent tax evasion. While Form 114a focuses on foreign bank and financial accounts, Form 8938 encompasses a broader spectrum of foreign financial assets, including accounts, stock holdings, and financial instruments. Each form addresses different aspects of the same overarching goal: increasing transparency in international financial reporting to the U.S. government.

When dealing with the detailed complexities of the 114A Form, it's crucial to approach it with care. This form is your record of authorization for someone else to file the FBAR on your behalf. To ensure accuracy and compliance, consider the following dos and don'ts:

• Do read and understand all the instructions provided by FinCEN before attempting to fill out the form. The guidelines are there to help you avoid common mistakes.
• Do ensure that all the information provided is accurate and complete. This includes the correct names, TINs, and account numbers related to your foreign bank and financial accounts.
• Do take advantage of the digital signature option if available, as this can streamline the process. However, make sure the digital signatures meet the requirements set by FinCEN.
• Do retain a copy of the completed Form 114A for your records, as you’re required to keep it for a period of 5 years. This is crucial for documentation purposes and in case FinCEN requests it.

• Don't hurry through the process of filling out the form. Taking your time can help ensure that all the information is filled out correctly and completely.
• Don't leave any required fields blank, unless specifically instructed in the guidelines. If a question doesn’t apply, understand how to correctly indicate this according to the form’s instructions.
• Don't forget to check whether your preparer is registered with the FinCEN BSA E-File system, as this is a prerequisite for them to legally file an FBAR on your behalf.
• Don't send this form to FinCEN unless specifically requested. The 114A form is meant to be retained by you and the preparer, not submitted unless directed.

Adhering to these guidelines helps safeguard against potential errors that could lead to issues with FinCEN. Remember, while you can delegate the task of filing, the responsibility of ensuring the FBAR’s timely and correct submission ultimately rests with you.

Understanding the Form 114a can be quite challenging, with many misconceptions surrounding its purpose and requirements. Let's tackle some of these misconceptions head-on to ensure clarity and compliance.

• Misconception 1: You must send Form 114a to FinCEN upon completion.
  Actually, you should retain Form 114a for your records and only provide it to FinCEN if requested.

• Misconception 2: Form 114a can only be filled out by individuals.
  In truth, both individuals and entities can complete Form 114a to grant authorization to a third party to file an FBAR on their behalf.

• Misconception 3: Digital signatures are not accepted on Form 114a.
  Contrary to this belief, the form can indeed be digitally signed, facilitating a smoother authorization process.

• Misconception 4: The form is necessary for everyone with foreign financial accounts.
  Form 114a is specifically for those who wish to authorize someone else to file an FBAR on their behalf; it's not required for all account holders.

• Misconception 5: Filing Form 114a relieves you of your legal responsibilities.
  Even after authorizing a preparer, the ultimate legal responsibility to timely file an FBAR if required by law still resides with the account holder.

• Misconception 6: Spouses always have to file separate FBARs.
  Spouses can file jointly, and they can both authorize a preparer using the Form 114a to file an FBAR on their behalf, should they meet certain conditions.

• Misconception 7: The preparer must have a PTIN (Preparer Tax Identification Number).
  While a PTIN is common for preparers, it's not mandatory for completing Form 114a. The preparer can leave this field blank if they don't have a PTIN.

• Misconception 8: Any third party, including friends, can be authorized to file on your behalf.
  The truth is, the preparer/filing entity must be registered with FinCEN's BSA E-File system, ensuring they are legitimately able to file the FBAR.

• Misconception 9: Once the form is completed, there’s no need to keep copies.
  Both the individuals/entities authorizing and those authorized to file must keep copies of Form 114a and the FBAR itself for five years, ensuring compliance and readiness in case of inquiries.

Clearing up these misconceptions is crucial for accurately handling your responsibilities related to foreign financial accounts. Staying informed and vigilant is key to ensuring compliance with FinCEN regulations and minimizing potential legal complications.

The Form 114a serves as a critical tool for those needing to authorize a third party to file the Report of Foreign Bank and Financial Accounts (FBAR). Here are ten key takeaways for effectively completing and utilizing this form:

• The Form 114a acts as a declaration of authorization by the account owner for a third party to file an FBAR on their behalf, ensuring compliance with the Financial Crimes Enforcement Network (FinCEN) regulations.
• Account owners must provide detailed information about themselves and any jointly filing spouse, including names, Social Security Numbers or Tax Identification Numbers, and the number of foreign accounts being reported.
• A vital feature of Form 114a is the ability for signatures to be digital, accommodating the modern need for electronic processing and filing.
• If filing jointly with a spouse, both parties must complete their respective sections of the form, including signature and date, to validate the authorization.
• The form clearly states the accountability of the account owner(s) for the accuracy of information provided and for the legal responsibility to file an FBAR, even though a third party prepares it.
• Part II of the form is designated for the preparer's information, who must be registered with FinCEN's BSA E-File system, highlighting the importance of selecting an authorized individual or entity for this task.
• The instructions emphasize that neither "SEE ABOVE" nor "SAME AS ITEM NUMBER X" is acceptable for completing Part II; every item must be filled out explicitly to ensure clarity and compliance.
• For a third-party preparer who does not possess a Preparer Tax Identification Number (PTIN), the corresponding field in the form should be left blank, indicating flexibility in preparer qualifications.
• Both the account owner(s) and the authorized third-party preparer must retain a copy of the completed Form 114a and the submitted FBAR for five years, as per 31 CFR 1010.430(d), underscoring the importance of record-keeping for potential future reference or audits.
• It’s imperative not to send this form to FinCEN unless requested, as this authorization record is intended solely for internal documentation to substantiate the authority granted to the third-party preparer.

Meticulous adherence to these guidelines can substantially streamline the FBAR filing process, ensuring legal compliance while delegating the complex task of reporting foreign bank and financial accounts to a qualified preparer.