Tax Alert: FBAR Deadline is April 18

Tax | March 23, 2017 | Josh Walther

The FBAR filing deadline is Tuesday, April 18, 2017.

If you are required to file an FBAR, it must be done on or before the April 18 deadline and must be filed electronically through the Bank Secrecy Act (BSA) E-Filing System.

Penalties for missing the deadline can be severe so please review details below to determine whether you need to file.

What are the FBAR and FinCEN Form 114?
FBAR stands for Foreign Bank Account Report. The form related to the FBAR filing was formerly the TD F 90-22.1; however, effective July 1, 2013, all FBARs must be submitted via the BSA E-Filing System using the Financial Crimes Enforcement Network (FinCEN) Form 114.

Who must file?
Taxpayers with foreign accounts whose aggregate value exceeds $10,000 at any time during the year must file a FinCEN Form 114: Report of Foreign Bank and Financial Accounts (FBAR). 

 

If you need more information about FBAR filing, please refer to the educational resources on the IRS website.

Where to file?

This form is filed with the Financial Crimes Enforcement Network (“FinCEN”) department of the U.S. Treasury. It is not attached to your IRS Tax Return filing, rather it’s filed electronically through FinCEN’s BSA E-Filing System. Institutions of all sizes must enroll as BSA E-Filers in order to complete the filing process. The application to enroll and file electronically is available at http://bsaefiling.fincen.treas.gov/Enroll.html. Additional information regarding the filing process may be found at http://bsaefiling.fincen.treas.gov/.

 

When to file?

FinCEN Form 114 must be filed by April 15 of the year immediately following the calendar year being reported.  There is also a maximum extension of six months ending on October 15, available for taxpayers. FinCEN will grant filers failing to meet the April 15 deadline an automatic extension. Specific requests for an extension are not required. Because April 15, 2017 falls on a Saturday, the filing due date for the 2016 calendar year is April 18, 2017.

 

What penalties may apply?

Failure to file the FinCEN Form 114 may result in a penalty up to $10,000 if the failure to file is non-willful. If willful, the penalty is up to the greater of $100,000 or 50% of account balances. Criminal penalties may also apply.

 

If you have questions about FBAR filing, deadlines or penalties, please contact a member of our tax team at 512.610.7200.

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