Tax Alert

Reminder of June 29 Filing Deadline for 2011 FBAR

(June 15, 2012)

Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts – commonly referred to as FBAR – must be received by the IRS no later than June 29, 2012, to be considered a timely filing. Normally, the FBAR form is due June 30 after the calendar year of the report. However, with June 30 falling on a Saturday, the deadline this year is June 29. Unlike many tax filings that need to be postmarked by the due date, the U.S. Treasury Department must actually receive the form on or before June 29.

The general rule is that U.S. persons with a direct or indirect financial interest in, or signature authority over, foreign financial accounts must file an FBAR if the aggregate value of their foreign financial accounts is more than $10,000 at any time during the previous calendar year. The FBAR helps the U.S. government identify unreported income maintained abroad, identify persons who may be using foreign accounts to circumvent U.S. tax laws, and trace funds possibly being used for illicit purposes.

A small subset of individuals with only signature authority previously was granted an extension under prior guidance, Financial Crimes Enforcement Network (FinCEN) Notice 2012-1. The filing due date for these individuals is June 30, 2013, for the 2011 calendar year as well as all years previously extended by FinCEN Notices 2011-1 and 2011-2.

Failure to file an FBAR could result in civil penalties ranging from $10,000 to the greater of $100,000 or 50 percent of the balance in the account in cases of a willful failure to report.

For More Information
John Kelleher

Under U.S. Treasury rules issued in 2005, we must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.  

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Michael A. Hollowell
Partner, Tax Services Leader, West Region