The Internal Revenue Service (IRS) issued a reminder to U.S. citizens, resident aliens and any domestic legal entity with foreign financial accounts that the extension deadline to file the annual Report of Foreign Bank and Financial Accounts (FBAR) is Oct. 15, 2022. Filers who missed the April 15 deadline earlier this year received an automatic extension to Oct. 15, and did not need to request the extension.
Who Must File?
The Bank Secrecy Act (BSA) mandates U.S. individuals to file FBARs under the following circumstances:
- An individual has a financial interest in, signature authority or other authority over one or multiple accounts (bank accounts, mutual funds or other financial accounts located outside of the United States) and
- The total value of all foreign financial accounts is greater than $10,000 at any point during the calendar year.
Given these requirements, U.S. individuals or entities with foreign accounts, no matter the size, are recommended to see if they qualify for FBAR filing requirements to avoid possible penalties.
Exceptions for Disaster Victims
Filers affected by recent natural disasters may have their FBAR due date further extended. The Financial Crimes Enforcement Network (FinCEN) announced that victims of Hurricane Fiona in Puerto Rico, Hurricane Ian in Florida, North Carolina, and South Carolina, and storms and floods in parts of Alaska have until Feb. 15, 2023, to file FBARs for the 2021 calendar year. If you’ve been impacted by a disaster, review the FBAR Relief Notices for more information.
How to File
The FBAR must be filed electronically with FinCEN, not on a federal income tax return. It can only be accessed and submitted through the BSA E-Filing System. Anyone unable to e-file their FBAR within the United States must contact FinCEN by phone at 800-949-2732 (703-905-3975 if calling from outside the United States) or by email at FRC@fincen.gov.
File Today to Avoid Penalties
Anyone who fails to file their FBAR when required could fall victim to substantial civil and criminal penalties that could result in a fine and/or prison time. If you need assistance filing your FBAR before the deadline, Doeren Mayhew’s international tax advisors stand ready to help.
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