United States – FBAR Deadline for Certain Individuals Extended for 4th Time

United States – FBAR Deadline for Certain Individ...

The U.S. has extended the filing date for the Report of Foreign Bank and Financial Accounts (FBAR) for certain individuals who have only signature authority over certain foreign financial accounts to June 30, 2015.

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Flash Alert 2014-007

The U.S. has extended the filing date for the Report of Foreign Bank and Financial Accounts (FBAR) for certain individuals who have only signature authority over certain foreign financial accounts to June 30, 2015.

WHY THIS MATTERS

Generally, a U.S. person who has a financial interest in or signature authority over foreignfinancial accounts must file an FBAR if the combined value of the accounts exceeds$10,000 at any time during the calendar year. The FBAR must be received by June 30 ofthe succeeding year (e.g., June 30, 2014 for 2013 reporting), and no extension isavailable. Absent a showing of reasonable cause, a civil penalty (up to a maximum of$10,000 per violation) may be imposed on a person who fails to properly file the FBAR.The extension announced by the U.S. Treasury Department’s Financial CrimesEnforcement Network (FinCEN) provides some relief from this reporting requirement forthose individuals who have only signature authority over certain foreign financialaccounts.

FinCEN Notice 2013-1 provides a fourth extension to employees and officers of specifiedregulated entities — including U.S. publicly traded companies and financial institutions —who have only signature authority over, but no financial interest in, certain foreignfinancial accounts.1 As with prior FinCEN notices, this extension does not apply toforeign financial accounts in which the officer or employee has a financial interest or topersonal accounts over which such individuals have signature or other authority.

In February 2012, Treasury previously extended the FBAR filing deadline for theseofficers and employees with signature authority to June 30, 2013. FinCEN Notice 2012-1provided an extension of time to file to those persons previously granted an extension byFinCEN Notices 2011-1 and 2011-2. (For prior coverage, see Flash International Executive Alert 2012-039, February 15, 2012.)

At the end of calendar year 2012, FinCEN released Notice 2012-2 to further extend theFBAR filing date for these eligible individuals to June 30, 2014.

All other U.S. persons required to file an FBAR this year (to report foreign financialaccounts for calendar year 2013) are required to meet the June 30, 2014 filing date.

Note that all FBAR filings must now be done electronically (the electronic version of theFBAR is FinCEN Report 114). Paper filings (Form TD F 90-22.1) will no longer beaccepted by the Internal Revenue Service.

FOOTNOTE

1  For the Notice, see:  http://www.fincen.gov/forms/files/FBAR%20Notice%20re%20Extended%20Filing%20Date%20(532-2013)_editSig.pdf.

The information contained in this newsletter was submitted by KPMG LLP’s Washington National Tax practice. 

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