global Tax Reminder…FBARs Are Due October 15th October 07, 2021 Remember, you must file your Foreign Bank and Financial Account Report (FBAR) by October 15, 2021. Important information for U.S. persons with FBAR filing requirements: The 2020 FBAR will be considered timely filed if received by October 15, 2021. Here’s what you should know. What is the FBAR? The Report of Foreign Bank and Financial Accounts, commonly called the FBAR, is filed on FinCen Form 114. It is an annual report in which U.S. persons (a citizen, resident, corporation, partnership, limited liability company, trust and estate) report financial interest and/or signature authority on financial accounts located outside the United States if the accounts’ highest balance during the year, when translated to U.S. dollars and then aggregated, exceed a $10,000 threshold. What is the 2021 deadline? Although the deadline was extended to October 31 last year, it will return to its normal due date of October 15 for 2021. In a typical year, the FBAR due date is already a bit confusing. The report is due on April 15th of the current tax year for the prior tax year. However, filers are given an automatic extension, meaning no action is required by the filer, to extend the FBAR until October 15th. Filing Instructions If you find that you have to file an FBAR, or FinCEN 114, visit the BSA E-filing System website. You can also have a third party (accounting firm) electronically file the FBAR on your behalf. If you fail to file, remember that you are subject to either a civil penalty of up to $10,000 for each negligent violation (non-willful violation), or a civil penalty of up to $100,000 or 50% of the balance of the account at the time of the purposeful violation (willful violation). Criminal penalties can arise as well for willful violations. If you were unaware of the FBAR filing requirement for 2020, or any prior year, KLR’s International Tax Services is here to help. We can assist with current year compliance or fixing potential omissions in prior years. We’re experienced with the variety of programs that help taxpayers get caught up on any foreign informational filings that may have been overlooked. Reach out to us at any time.
