Beginning this year, reporting for the 2016 calendar year, the due date for filing Foreign Bank Account Reports (FBAR) changes from June 30th (which applied to all the previous tax years) to the same filing deadline as individual income tax returns, April 15. Like income tax returns, FBARs will be permitted to go on extension up to six months, for a final deadline of Oct. 15. An extension to file your income tax return will serve as an extension to file an FBAR. Specific requests for an FBAR extension are not required. For filers living abroad, Treasury Reg. Section 1.6081-5 will allow filers to coordinate FBAR deadline to their tax return deadline. Furthermore, relief will be available for first-time filers who miss the extension deadline or fail to make an extension request. Penalties may be waived in those cases.
As a reminder, U.S. persons are required to file an FBAR if they have financial interest in or signature authority over one or more financial accounts located outside the United States, and the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
Former IRS Attorneys of Holtz, Slavett & Drabkin, APLC, have successfully represented clients with tax issues related to reporting of foreign bank accounts and offshore assets. For a consultation, please contact us at (310) 550-6200.