When is FBAR Due Source: http://freedomtaxaccounting.com/when-is-fbar-due/ All individuals who have a financial interest or signature authority over a foreign account or investment that amounts to more than $10,000 are obligated to file the FBAR with the US Treasury Department. The individual or filer, or an individual whos authorized by the filer (in writing) has to complete the FinCEN Form 114a and submit it electronically via the BSA E-Filing System. Failing to do so could lead to significant civil, and in some cases, criminal penalties. According to the FBAR, all individuals having a foreign financial account that exceeds the given threshold in the form of the following are required under the Bank Secrecy Act to provide information of their foreign accounts on a yearly basis. Bank and retirement accounts. Insurance policies. Mutual funds or equity interest in the fund. Individually owned bonds, stock certificates, notes. Annuities with cash surrender value. Foreign Online Gambling Accounts Important Note: The threshold of $10,000 applies to all foreign accounts that are either owned jointly or separately, including those foreign accounts where you may not have any financial interest, but have signature authority over (business accounts that you are in charge of).
When to File an FBAR? For many years, the FBAR filing dates had been out of sync with the deadlines for filing of federal tax returns. For US citizens living overseas, the US federal return was due before June 15th rather than April 15th, which can be further extended to October 15th. The complicated deadlines only made it harder for expatriates to make their FBAR and tax filing. However, in 2016, a big change was made for FBAR reporting, with the FBAR deadline moving up to the fall and in line with Tax Day. This change has made it easier for expats living abroad to stay compliant with their FBAR filing. The new annual due date for the FBAR is April 18, 2017, which coincides with the federal income tax filing deadline. The FinCEN announced that all FBAR filers get an extension for 2016 reporting until October 15th of 2017. Expat Income Tax Returns The deadline for expats to file their tax returns for 2016 was June 15, 2017 since expats living abroad qualify for an automatic-two month filing extension. Although the two-month filing extension does apply to FBARs as well, the six-month automatic extension does supersede the shorter extension and will provide expats with more time to get their documents in order. But, more importantly, expats living abroad will still have to pay their taxes that are due by April 18, 2017, even if they plan on filing their return by June 15. Important Note: Those who fail to pay their taxes due by April 18, 2017 will find that the IRS wont assess a failure-to-pay penalty if they file and pay by June 15, 2017. But, you will still be charged interest on the unpaid amount if your taxes are not paid by the April deadline. This is why it is best to start your tax filing as soon as possible, even if you are missing a document or two.