It has been almost one year since the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued proposed changes to the rules for annually reporting foreign financial accounts on FinCEN Form 114, “Report of Foreign Bank and Financial Accounts,” (the FBAR) and more than 18 months since Congress acted to align the FBAR filing deadline with the deadline for filing individual income tax returns.
The combination of the statutory change and regulatory amendments (if finalized) will transform the landscape for FBAR reporting, easing reporting requirements for some filers but imposing additional burdens on others. Because the penalties for noncompliance with the FBAR rules can be staggering—up to 100% of the highest amount held in the pertinent foreign financial accounts for willful failures—it is critical that owners of foreign financial accounts and individuals holding signatory authority over these accounts remain current on the FBAR rules.
Taxpayers need to be aware of the new filing deadline for calendar year 2016 FBAR reports, current limited exceptions to the annual filing requirements, the possible relief from penalties for previous failures to file, and the scope and current status of proposed changes for future FBAR filings.
Read a February 2017 report [PDF 143 KB] prepared by KPMG LLP: What’s News in Tax: The FBAR: New due date, but regulatory pause leaves reporting rules in place
© 2017 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.
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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.