DEADLINE: Foreign Bank Account Reports Due June 30, 2014
Any U.S. person who has a financial interest in or signature authority over one or more foreign financial accounts with an aggregate value over $10,000 (on any day of the year) must report the accounts to the Treasury Department in Detroit by filing Financial Crimes Enforcement Network (FinCEN) Form 114 (the so-called “FBAR”) by June 30 of the following year. Thus, the deadline for 2013 FBAR filings is June 30, 2014. The Form 114 replaces former Form TDF 90-22.1, which was a paper form.
The FBAR is not filed with the filer’s federal income tax return, on which a taxpayer must separately report his or her foreign financial assets. It is an annual report to the Treasury Department that, for 2013, must be filed electronically on or before June 30, 2014. No extensions of time to file are granted. An FBAR filed on Tuesday July 1, 2014, will be deemed late. Reporting foreign financial assets on a Form 8938 as part of the filer’s 2013 federal income tax return does not eliminate the requirement to file an FBAR.
E-filing is quick and secure. E-filers will receive an acknowledgement of the submission. FBARs must be e-filed online.
Account holders who fail to file FBARs may be subject to civil penalties, criminal penalties, or both. Those who failed to file in prior years face particular concerns which should be addressed on a case by case basis, particularly if income from those accounts was not reported on federal income tax returns.