It’s FBAR season again. The FBAR, the Report of Foreign Bank and Financial Accounts, previously known as Treasury Department Form TD F 90-22.1 and now known as FinCEN Form 114, is due by June 30, 2015, for foreign financial accounts that existed during 2014, including offshore accounts. Even if you are on extension to file your 2014 U.S. income tax return, there is no extension for the FBAR filing. The FBAR must be filed electronically.
We’ve written extensively about the FBAR and the foreign accounts and assets that are required to be reported. We advise U.S. taxpayers on whether their foreign assets are subject to the FBAR. We also advise on how to correct past FBAR non-filings. In some cases, FBAR non-compliance can be remedied without penalties. In other cases, such as when a taxpayer did not file an FBAR and also did not report foreign income to the IRS, then it may be possible to come into compliance via a Voluntary Disclosure to the IRS. However, if the IRS already has information about the foreign account, or if the taxpayer is already under investigation or audit, then it may be too late for corrective filings. Thus, proper timing is crucial. We can assist you with such issues, and with offshore reporting and IRS compliance for foreign assets.