Once again, the FBAR deadline is upon us. The FBAR, the Report of Foreign Bank and Financial Accounts, previously known as Treasury Department Form TD F 90-22.1 and now known as FinCEN Form 114, is due by June 30, 2016, for foreign financial accounts that existed during 2015. Even if you are on extension to file your 2015 U.S. income tax return, there is no extension for the FBAR filing. The FBAR must be filed electronically.
We’ve written extensively about the FBAR and the many different types of foreign assets that are considered to be “foreign financial accounts” and are required to be reported:
Our attorneys advise U.S. taxpayers on whether their foreign assets are subject to the FBAR. We also advise on how to correct past FBAR non-filings. In some cases, FBAR non-filing can be corrected without penalties. In other cases, such as when a taxpayer did not file an FBAR and also did not report foreign income to the IRS (interest, dividends, rents, etc.), then it may be possible to come into compliance via a pre-emptive Voluntary Disclosure to the IRS. However, if the IRS already has information about the offshore assets (from the foreign bank, for example), or if the taxpayer is already under investigation or audit, then it may be too late for a voluntary disclosure. Thus, proper timing is critical. We can assist you with these issues regarding reporting foreign assets and minimizing penalties. Please contact us for a confidential consultation.