Report of Foreign Bank & Financial Accounts (FBAR)
This information report (FBAR) filing deadline for 2016 is April 18, 2017
IRS had issued, during 2014, its “Reference Guide on the Report of Foreign Bank and Financial Accounts (FBAR),” which summarizes and augments previously published information on that report that must be filed by U.S. persons who have financial interests in or signature authority over financial accounts maintained with financial institutions located outside of the U.S.
The FBAR is not filed with a federal tax return. A filing extension, granted by IRS to file an income tax return, does not extend the time to file an FBAR.There is no provision to request an extension of time to file an FBAR. The Financial Crimes and Enforcement Network (FinCEN) has delegated enforcement authority regarding the FBAR to the IRS.
• Recordkeeping. The Reference Guide provides that, generally, records of accounts required to be reported on the FBAR should be kept for five years from the due date of the report, which is now April 15 of the year following the calendar year being reported. The records should contain the following: a) name maintained on each account; b) number or other designation of the account; c) name and address of the foreign bank or other person with whom the account is maintained; d) type of account; and e) maximum value of each account during the reporting period. Retaining a copy of the filed FBAR can help to satisfy the recordkeeping requirements. An officer or employee who files an FBAR to report signature authority over an employer’s foreign financial account is not required to personally retain records regarding these foreign financial accounts.
• If a filer does not have all the available information to file the 2016 return by the April 18, 2017 filing due date, the Reference Guide provides that the filer should file as complete a return as possible by April 18, 2017 and amend the report when additional or new information becomes available.
TIP: FBAR and FinCen Reports must be e-filed.
You may be required to report the account(s) to the Department of the Treasury.
Any person (resident) living in and filing a U.S. tax return, who has a financial interest in or signature authority over any financial account(s) located outside of the United States is required to electronically file a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR), if the aggregate value of these accounts exceeds $10,000 at any time during the 2016calendar year.
How to comply with the law…
• Answer FBAR-related questions on federal tax and information returns. For example: Check the block on Form 1040 Schedule B, Part III.
• Complete electronic version of FinCEN Report 114.
• E-file the completed report using the FinCEN electronic filing system available at www.fincen.gov
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