Updated Filing Deadlines for FBAR
A new annual due date for filing Report of Foreign Bank and Financial Accounts (FBAR) is worth noting if you have financial interest in or signing authority over any foreign accounts. Beginning 2017 for the 2016 tax year, the deadline is now April 15 with a six month extension available until October 15. The change was mandated by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 to coincide with the federal income tax filing season.The mandated six-month extension will be granted automatically to those who fail to meet the April 15 deadline so no specific request for an extension will be required. This extension is granted in order to place minimal burden on the public and the Financial Crimes Enforcement Network (FinCEN).
What is an FBAR?
The FBAR refers to the FinCEN Form 114, which must be filed electronically. This is a calendar year report submitted to report the maximum value of financial accounts maintained in foreign countries. You must file this report through FinCEN’s BSA E-Filing system. The FBAR is not filed with a federal tax return.Who is Required to File an FBAR?
You may now be asking yourself if you are required to file this report at all. According to the IRS, the guidelines are as follows:
- the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
- the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
There are exceptions to the reporting requirement, which can be found on the IRS website. For more details regarding the FBAR, please visit the IRS website or take a look at the IRS FBAR Reference Guide.
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