FBAR Filing Deadline Imminent

by Foley Hoag LLP
Contact

Reports Due Before the End of June

Every U.S. person that had a financial interest in, or signature authority over, a foreign financial account during 2012 must file U.S. Treasury Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”), if the aggregate value of such foreign financial account(s) exceeded USD $10,000 at any time during 2012. If an FBAR for 2012 is required, it must be received by the Treasury Department on or before June 28, 2013 (or by June 30, 2013, if filed electronically). This deadline cannot be extended.

In your determination of whether you have an FBAR filing obligation, you should consider the following definitions, which apply to both individuals and entities for FBAR purposes:

U.S. Person

A “U.S. person” means any (1) U.S. citizen or resident (including resident aliens), (2) entity (including, but not limited to, a corporation, partnership or limited liability company) created or organized in the United States, and (3) trust or estate formed under the laws of the United States. Entities and trusts that are disregarded for federal income tax purposes are not disregarded for FBAR purposes and, therefore, may be required to file an FBAR.

Financial Account

A “financial account” generally includes any savings deposit, demand deposit, checking, securities, security derivatives, debit card, prepaid credit card, and any other financial instrument account, including certain insurance or annuity policies and pension funds. An account with a mutual fund or similar pooled fund which issues shares available to the general public that have a regular net asset value determination and regular redemptions is a financial account. However, an equity interest in a hedge fund, private equity fund or other private investment fund is not currently considered to be a financial account.

Foreign Financial Account

Only “foreign financial accounts” are reportable on the FBAR. A foreign financial account is a financial account that is maintained outside the United States. For this purpose, the United States includes the states, the District of Columbia, territories and possessions of the United States, and certain American Indian lands. An account maintained with a foreign branch of a U.S. financial institution is a foreign financial account for FBAR purposes. In contrast, an account maintained with a U.S. branch of a foreign financial institution is not a foreign financial account for FBAR purposes.

Financial Interest

A U.S. person has a “financial interest” in every financial account for which such U.S. person is the owner of record or holds legal title, regardless of whether the account is for such U.S. person’s benefit or for the benefit of another.

In addition, a U.S. person is required to file FBARs with respect to foreign financial accounts owned by entities if such U.S. person has, directly or indirectly, (a) in the case of a corporation, more than 50% of the voting power or the total value of the shares of such corporation; (b) in the case of a partnership, a more than 50% interest in the profits or capital of such partnership; or (c) in the case of other types of entities, more than 50% of the voting power or the total value of the equity or assets, or a more than 50% interest in the profits of, such other entities.

Similarly, if a U.S. person holds a present beneficial interest in more than 50% of the current income or assets of a trust that holds a foreign financial account, such U.S. person is required to file an FBAR with respect to the foreign financial accounts of the trust, unless the trust, trustee or agent of the trust is a U.S. person and files an FBAR disclosing the trust’s foreign financial accounts. A U.S. person with a remainder interest in a trust is not within the scope of the FBAR.

Signature Authority

“Signature authority” is the authority of an individual (alone or in conjunction with another individual) to control the disposition of assets held in a foreign financial account by direct communication (whether in writing or otherwise) to the financial institution that maintains the foreign financial account.


If an FBAR is required, the following generally describes the procedural requirements and the consequences of non-compliance:

Filing Options

The printable FBAR may be found here. If a filer opts to use this format, the paper FBAR must be mailed to

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

If a private delivery service is used, the paper FBAR must be mailed to:

IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226.

Alternatively, there is now an online filing option for FBARs. The online form and instructions may be found here, together with instructions about how to register for a user account, which is required for e-filing. Only one signature can be submitted on the electronic form. Therefore, for joint filers, each spouse must e-file a separate FBAR.

Unlike income tax returns, which may be mailed on the filing deadline and considered timely, FBARs must be received by the due date. However, because June 30, 2013 is a Sunday, FBARs filed in paper format must be received by Treasury on or before Friday, June 28, 2013. FBARs filed electronically may be submitted online through June 30, 2013.

Penalties for Non-Compliance

Failure to timely and properly file an FBAR may expose a taxpayer to a civil penalty of up to USD $10,000. Willful violations of FBAR filing obligations may expose a taxpayer to an increased civil penalty of up to the greater of USD $100,000 or 50% of the aggregate value of the taxpayer’s foreign financial accounts at the time of the violation. In addition, willful violations may be subject to criminal penalties.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley Hoag LLP | Attorney Advertising

Written by:

Foley Hoag LLP
Contact
more
less

Foley Hoag LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!