Do not miss the June 30 filing deadline for the Report of Foreign Bank and Financial Accounts! Penalties could be severe!
Are you a United States person* who has a financial interest in, or signature authority over, a foreign financial account (including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account) that had an aggregate value greater than $10,000 at any time during the calendar year? If so, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) – Form TD F 90-22.1
Unlike many tax returns, there are NO extensions of time to file this return. In addition, the return must be received by the Department of Treasury by June 30. The “mailbox rule” does not apply as this form is not considered filed until it is received by the Department of Treasury in Detroit, Michigan. It is NOT filed with your personal income tax return.
The failure to file penalties may be subject to civil penalties of up to $10,000. Penalties may be waived for reasonable cause. A person who willfully fails to report a foreign bank account may be subject to a civil penalty equal to the greater of $100,000 or 50% of the balance in the account at the time of the violation.
Do you need help determining if you have a filing requirement? Post a comment below or contact our Tax Planning and Preparation group at 440-449-6800.
*: United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.