Tax law can be quite confusing and to add to the confusion, the law changes from year to year. For instance, the reporting dates for the 2015 and 2016 Report of Foreign Bank and Financial Accounts (FinCEN Report 114) are both different. On July 31, 2015, President Obama signed the short-term highway funding extension, H.R. 3236 which revised the FBAR reporting deadlines (among others). The calendar year 2015 reports are due June 30, 2016 with no extensions. Under the new law, calendar year 2016 report due dates are the same as individual returns, due April 15th with a maximum six-month extension. Penalties for not properly filing these forms or failing to file them altogether are quite stringent.
Who needs to file an FBAR?
- U.S. persons who hold any financial interest in, or signature authority over, a foreign financial account over $10,000 at any time in a calendar year must file a Report of Foreign Bank and Financial Accounts (FinCEN Report 114) with the Treasury Department.
There are additional forms that may need to be filed if the foreign financial account exceeds certain thresholds.
If you have any questions about foreign financial account reporting for yourself or for your business, please do not hesitate to contact us.
Written by Rebecca DeWolfe, CPA