Holtz, Slavett & Drabkin would like to remind that U.S. Taxpayers who have financial interest in, or signature authority over, foreign financial accounts, must file their FBARs by June 30, 2013.
Under the requirements of the Banking Secrecy Act, 31 CFR 103.24, each “US person” with an interest in, signature or other authority over, one or more bank, securities, or other financial accounts in any foreign country must file an FBAR if the aggregate value of such accounts at any point in a calendar year exceeds $10,000. A “US person” generally means a citizen or resident of the United States, or a person in and doing business in the United States – it is not limited to individual taxpayers and includes partnerships and corporations.
The FBARS must be filed by mailing them to:
United States Department of the Treasury, P.O. Box 32621, Detroit, MI 48232-0621
If an express delivery service is required for a timely filed FBAR, address the parcel to: IRS Enterprise Computing Center, ATTN: CTR Operations Mailroom, 4th Floor, 985 Michigan Avenue, Detroit, MI 48226
The delivery messenger service contact telephone number: (313) 234-1062.
The FBAR has to be received on or before June 30th. This is different than the regular “mailbox rule” for tax returns that requires that a return be only postmarked by the deadline.
Failure to comply with the FBAR rules can have significant consequences, including criminal prosecution and civil penalties, reaching up to 50% of the value of the account.,
If you would like to consult about reporting requirements for foreign bank accounts, please call Former IRS Attorneys of Holtz, Slavett & Drabkin at (310) 550-6200 to schedule a consultation.