Attention U.S. Foreign Bank Account Holders-Filing Deadline June 30thJune 23, 2015
The deadline for FBAR reporting is fast approaching! Make sure you are in compliance with FinCEN regulations.
If you hold any financial interest or authority over a foreign bank account with an aggregate balance exceeding $10,000, make sure you send Financial Crimes Enforcement Network (FinCEN) Form 114, Reporting of Foreign Bank and Financial Accounts (FBAR) to the U.S. Department of the Treasury no later than Tuesday, June 30th 2015. The FBAR must be received by the U.S. Department of the Treasury by this date.
Who must file an FBAR?
Any U.S. person with a financial interest in or signature authority over an account located outside the country in an aggregate amount over $10,000 must file the FBAR. This requirement has been in place for many years. Regulations have been issued by FinCEN regarding FBAR filing requirements such as who must file an FBAR and what type of financial accounts are subject to FBAR reporting. For example, the regulations address definitional questions including:
- What is a United States person? A United States person is a citizen or resident of the U.S. or an entity (corporation, LLC, trust, or partnership created legally in any U.S. state or the District of Columbia, Native American tribes, and territories in possession of the U.S.).
- What is a reportable account? Bank accounts, securities accounts, and other financial accounts all fall under the reportable account umbrella. Other financial accounts include securities, brokerages, savings, insurance policies, etc.
As an accommodation for specific circumstances, FinCEN released Notice 2014-1 which extended the filing deadline to June 30th, 2016, for certain individuals with signature authority over, but no financial interest in, one or more foreign financial accounts. This extension applies to the reporting of signature authority held during 2014 and all reporting deadlines extended by previous Notices.
FinCEN 114 replaced the former TD F 90-22.1 effective July 1, 2013. FinCEN 114 must be electronically filed using the FinCEN E-Filing System.
Failure to comply with the FinCEN reporting requirements carries very material penalties. Therefore, it is imperative that all U.S. persons review their foreign financial account interests and evaluate whether they are subject to FBAR reporting for 2014 or prior years.. For more information and details on reporting requirements, refer to the IRS guide and FBAR Instructions.
Questions? Contact any member of our Global Tax Services Practice.