We remind readers that the 2012 Report of Foreign Bank and Financial Accounts (the “FBAR”), Form T.D. 90-22.1, is due by June 30, 2013.
The FBAR is required to be filed by a U.S. person who has a financial interest in, or signature or other authority over, any foreign financial account if the aggregate value of the financial account(s) exceeds $10,000 at any time during the calendar year.
If you participated in the 2009, 2011 or 2012 IRS Offshore Voluntary Disclosure Program (OVDI or OVDP), you still must file an FBAR if you had a foreign financial account subject to the reporting threshold at any time during 2012. Having participated in the voluntary disclosure program, you must ensure ongoing tax compliance regarding foreign assets.
The FBAR applies whether or not you participated in a voluntary disclosure. If you have an interest in a foreign financial account (whether as owner, co-owner, signatory or power of authority), foreign mutual fund, foreign annuity policy, foreign life insurance policy or have a beneficial interest in a foreign trust, you may have an FBAR reporting requirement.
Please note the following additional points:
- A new FBAR form was introduced by the IRS in January 2012. Even though the new FBAR form is substantively similar to the prior version, you should use the new form.
- Recently enacted Treasury Regulations now include foreign annuities and foreign life insurance policies owned by U.S. persons which have a cash surrender value, foreign mutual funds and foreign trusts as reportable via the FBAR. Please see our article here. Contact us if you have any questions about whether you are subject to the new FBAR rules.
- The requirement to file the FBAR exists irrespective of whether you filed new IRS Form 8938, Statement of Foreign Financial Assets. We have written about new Form 8938 here. Call us if you have any questions about new Form 8938.
- The June 30, 2013 deadline is the deadline for receipt of the FBAR by the Treasury Department (unlike IRS Forms which must be postmarked by, e.g., April 15).
- Even if you have an extension for filing your tax returns, the 2012 FBAR is still due by June 30, 2013. There are no extensions for the FBAR deadline.
- Even if you closed a foreign account during 2012, an FBAR may still be due if your interest in the account (or annuity policy, mutual fund, etc.) existed at any time during 2012.
We can advise you regarding whether you are required to file an FBAR, and we can prepare the FBAR for you. In light of the June 30, 2013 deadline, please contact us immediately.