As the 2017 tax season approaches (starting 1/23/17) taxpayers are reminded of the new annual due date for filing Reports of Foreign Bank and Financial Accounts (FBAR) for foreign financial accounts set for April 15. This change was effected in an effort to have the FBAR submission date coincide with the Federal income tax filing season. The Act also mandates a maximum six-month extension of the filing deadline. To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year. Accordingly, specific requests for this extension are not required. *Note: The due date for FBAR filings for foreign financial accounts maintained during calendar year 2016 is April 18, 2017, consistent with the Federal income tax due date.
If you are U.S. person for tax purposes, and have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR).
Visit our blog to determine whether you need to file an FBAR, and why voluntary disclosure of applicable offshore accounts is always the smartest option.