An important deadline is coming up for taxpayers who have an interest in foreign financial accounts with an aggregate value of $10,000 or more at any one time during the year. Specifically, any U.S. person who has a financial interest or signature authority over such foreign financial accounts must file Foreign Bank Account Reporting Form 114.
A “foreign financial account” is a financial account located outside the United States. The term “financial account” includes securities, brokerage, savings, demand, checking, deposit, time deposit accounts, shares in mutual funds, insurance and annuity policies with cash value maintained with a financial institution.
FBAR requirements are currently met by filing FinCEN Report 114 (formerly Form TD F 90-22.1). For the 2015 calendar year, Form 114 must be filed by June 30, 2016 electronically through the FinCEN website (www.fincen.gov) or other approved software. Third parties, such as preparers, can be authorized to file the report on behalf of a taxpayer. Please note, no extensions for filing the FBAR can be obtained for this year.
In planning for next year’s filings, please be aware that during 2015 a change to the due date to file FinCEN 114 was made for next year’s filing period. The new due date to file FinCEN 114, starting with the 2016 calendar year, will change from June 30 to April 15, with an extension available for a six-month period.
If you need assistance or have any questions about filing FBARs, please contact Schneider Downs.