IRS Extends Deadline for Foreign Bank Account Disclosure . . . or Not?
by Asher Rubinstein, Esq.
Rubinstein and Rubinstein separates itself from other attorneys by our attention to detail and committment to our clients. Thus, when we read today’s news report that the IRS has extended the deadline for application to the Foreign Account Voluntary Disclosure Program, we noted that many other practioners added that the FBAR deadline was extended as well. That is not precise and not correct. The FBAR deadline is extened to October 15, but only for taxpayers who have already reported foreign income and already paid tax on that foreign income. For many people, their foreign account was not reported, and tax not paid, which means that they now have until October 15 to apply for the Voluntary Disclosure Program, but the FBARs are still due by September 23!
While it would have made more sense had the IRS made a uniform extension for both Voluntary Disclosure and the FBAR, it is our job to work within the regulations as they exist, to advise clients accordingly, and to pay special attention to IRS inconsistencies that can lead to costly client errors.
Our recommendation remains: if you have a non-compliant foreign bank account, you should enter the Voluntary Disclosure Program and file the FBARs. Be guided by the correct deadlines, and which deadline applies to your particular facts. Contact us for more information.