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Filing Requirements for Taxpayers with Foreign Assets - New Due Date of October 16, 2017

06.27.17

All taxpayers with foreign financial accounts or bank accounts should determine if they have an FBAR filing requirement. The FBAR is not filed with a federal tax return. If a FBAR filing requirement exists, it must be filed electronically through the FinCEN's BSA-E-Filing System on a Form 114. In addition, on the Schedule B of the filer's federal tax return, the existence of any foreign bank accounts or financial accounts must be disclosed and whether a FBAR filing is required for the year.

Who must file the FBAR?

The Report of Foreign Bank and Financial Accounts (FBAR) must be filed if you have a financial interest in, or signatory authority over, one or more reportable foreign financial accounts that had an aggregate value exceeding $10,000 at any time during 2016.

What is the new filing deadline?

Beginning with 2016 FBAR filings, the new annual filing date is April 15. In addition, The Department of Treasury granted an automatic extension until October 15, 2017. Filers are not required to request an extension. The new FBAR filing deadline now mirrors the Federal income tax due date guidance including the provision that if the Federal income tax due date falls on a Saturday, Sunday, or a legal holiday, an FBAR is considered timely filed if it is filed on the next succeeding day.

What are the penalties for non-compliance?

Failure to file the FBAR may result in civil and criminal penalties.

The determination of whether an FBAR is required to be filed can be difficult. Accordingly, we suggest clients contact their BPM tax advisors to confirm whether they have a reporting obligation and to request assistance with the preparation of the FBAR, as appropriate.