FBAR FILING DUE DATE SET TO CHANGE IN 2016
FBAR Filing Deadline – Change in Due Date Coming.
A change in the due date for the Financial Crimes Enforcement Network (“FinCEN”), Form 114, commonly referred to as the FBAR will is set to change in the coming year. The change in the due date will align the FBAR filing due date with other common individual return due dates. In addition, the new legislation allows taxpayers to file for an extension on the filing due date of the FBAR. Both should be welcome changes by the tax community,
The Surface Transportation and Veterans Health Care Choice Improvements Act of 2015.
Tucked away in the Surface Transportation and Veterans Health Care Choice Improvement Act (the “Act”) of 2015, which was enacted on July 31, 2015, is a modified the FBAR filing deadline. The Act changes the FBAR filing deadline from June 30th to April 15th to align it with the filing deadline for individual income tax returns. Importantly, the Act also allows FBAR filers can request a six-month extension until October 15th to file the report.
The specific language of the Act provides:
(11) The due date of FinCEN Report 114 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary.
The Act changes the due date of the FBAR for taxable years beginning after December 31, 2015.
About the FBAR.
FBAR refers to Form 114, Report of Foreign Bank and Financial Accounts, that must be filed with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Treasury Department. The form must be filed electronically and is only available online through the BSA E-FilingSystem website .
Who Needs to file an FBAR?
Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2014 generally must file. More specifically, in order to determine whether or not the FBAR is required, all of the following must apply:
The filer is a U.S. person;
The U.S. person has a financial account(s);
The financial account is in a foreign country;
The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.
Attorneys at Harlowe & Falk are based in the greater Seattle area and help clients nationally understand their FBAR filing requirements.
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Mehrdad is a partner at the law firm of Harlowe & Falk LLP. Based in the greater Seattle area, but with clients internationally, Mehrdad's practice includes international tax consulting. This includes consulting with clients on inbound transactions, outbound transactions, mergers & acquisitions, and IC-DISC....