Starting this year, the filing deadline for the Report of Foreign Bank and Financial Accounts (FBAR) form has been moved up from June 30 to April 18, 2017.
This change comes as a result of some due date disparity, enacted by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.
The FBAR (aka FinCEN Form 114), will now share the same filing deadline as individual income tax returns and will be permitted to go on extension up to six months. To make the filing date transition easier, FinCEN will grant filers failing to meet the FBAR annual due date of April 18 an automatic extension to October 16 each year.
Please note that the FBAR filing does not satisfy the requirement to file Form 8938 (Statement of Foreign Financial Assets), which needs to be filed with an individual’s annual income tax return.
Who must file an FBAR?
United States persons (as defined below) are required to file an FBAR if 1) the U.S. person had a financial interest in or signature authority over at least one financial account located outside of the U.S.; and 2) the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported. However, there are some exceptions to the FBAR reporting requirements if applicable to the person or foreign financial account.
The definition of a United States person includes citizens, residents, entities, corporations, partnerships, limited liability companies, trusts and estates, created or organized in the U.S. or under the laws of the U.S.
If you think you may be required to file an FBAR for the 2016 tax year or prior years, contact me or another member of Kaufman Rossin’s international tax team. Kaufman Rossin can e-file this form with the U.S. Department of the Treasury on behalf of our clients.
Maria Toledo, CPA, is a tax manager in Kaufman Rossin’s Miami office. Kaufman Rossin is one of the top CPA firms in the U.S. and offers international, federal, state and local tax services to clients across the country. Maria can be reached at firstname.lastname@example.org.