Last week, the Internal Revenue Service posted a notice on its website stating that the FBAR deadline remains April 15 and the extension of the tax filing deadline for individuals to May 17, does not affect the FBAR requirement.
This posting (especially the part “May 17 extension does not affect the FBAR requirement”) can cause confusion about the 2020 deadline to file FBARs because FBAR filers are granted an automatic extension until October 15, 2021.
Therefore, we wanted to confirm again that filers missing the April 15 deadline will receive an automatic extension until October 15, 2021, to file the FBAR. They do not need to request an extension.
What is FBAR and Who Must File It?
FBAR (Foreign Bank Account Report), also known as “FinCEN Form 114”, is one of the most common IRS international tax forms. If you are a U.S. person who has ownership or signature authority over foreign accounts with a combined value of over $10,000 in the calendar year, you are required to file an FBAR report. The purpose of the FBAR is to fight tax evasion in connection with offshore accounts and to disclose money and other foreign holdings and accounts to the IRS.
Most U.S. taxpayers are subject to FBAR reporting and FBAR non-compliance can be subject to harsh penalties. There are several IRS programs taxpayers may use to resolve prior non-compliance.
If you need assistance or have any questions about filing FBARs, please contact Schneider Downs International Group.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.