Mandatory Electronic Filing for FBARs Effective July 1, 2013.
June 30, 2013 is the filing due date for 2012 “FBARs,” also known as Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If there is a non-willful failure to file, the penalties are up to $10,000. If there is a willful failure to file, the penalties are up to the greater of $100,000 or 50% of account balances per year. Criminal penalties also may apply.
Anyone who maintained offshore financial accounts with an aggregate value in excess of $10,000 at any time during tax year 2012 is required to file an FBAR. No extensions are available for this filing deadline and an extension of time to file a federal income tax return does not extend the due date for filing an FBAR. For 2012, you may file the FBAR by mailing it to the U.S. Department of the Treasury, P.O. Box 32621, Detroit, MI 48232-0621. Please note that the 2012 FBAR, available here, must be received by the U.S. Department of the Treasury on or before June 30, 2013.
Effective July 1, 2013, taxpayers must electronically file FBARs through the BSA E-File System:
Currently, a third party preparer may not electronically file an FBAR on behalf of a taxpayer. FinCEN currently is contemplating changes to the FBAR form which would add the capability for a third party preparer to file the FBAR on behalf of a taxpayer. Whether those changes will take place, or if they do, when they become effective, is uncertain.
If you have questions concerning undeclared foreign assets or bank accounts, please contact us.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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