United States – New Law Changes Filing Due Date for FBAR

United States – New Law Changes Filing Due Date

On July 31, 2015, U.S. President Barack Obama signed a highway funding bill that includes a measure amending the filing due date for FinCEN Report 114, Report of Foreign Bank and Financial Accounts (the “FBAR”). The new provision aligns the FBAR filing date with the individual income tax filing due date, and provides for an extension.

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On July 31, 2015, U.S. President Barack Obama signed a highway funding bill1 that includes a measure amending the filing due date for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the “FBAR”).  The new provision aligns the FBAR filing date with the individual income tax filing due date, and provides for an extension.

WHY THIS MATTERS

Beginning with the 2016 FBAR (due in 2017), the due date for FBAR reporting will change from June 30 to April 15 to coincide with the due date for filing an individual income tax return.  Although the FBAR filing due date has been moved forward by two-and-a-half months, FBAR filers may request an extension to October 15 to file the form.  For first-time FBAR filers, any penalty for failure to timely request for, or file, an extension, may be waived by the IRS. 

U.S. citizens and residents (as well as U.S. entities) with a financial interest in, or signature authority over, non-U.S. financial accounts must file an FBAR if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.  The FBAR is filed electronically, separate from the income tax return, and must be received on or before the required due date to be treated as timely filed.  Currently, the June 30 filing date that applies to calendar year 2015 FBARs may not be extended (for prior coverage, see GMS Flash Alert 2015-072, June 9, 2015). 

Beginning with the calendar year 2016 FBAR, the filing due date will change to April 15, with the opportunity to request up to a six-month extension of time to file (thus extending the due date to October 15).  So, while the due date for the calendar year 2015 FBAR remains June 30, 2016, the due date for subsequent calendar years will be April 15, with a six-month extension available.  Presumably the IRS will create a form for U.S. filers to request a filing extension. 

The following information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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