FBAR Due Date Reminder - April 18, 2017 Extended to October 16, 2017 (2/26/17)

A reader posted a reminder under another blog entry that the due date for the FBAR report, FinCEN 114, here, is now due April 15 for the prior year's report.  When the filing date falls on a weekend day or on a holiday, the filing date is the next succeeding business day (a weekday that is not a holiday).  Accordingly, the due date for the 2016 year is April 18, 2017 (per the IRS web site here).  And, FinCen is providing an automatic extension (no filing required to obtain the extension) until October 15 (which, for the 2016 report, will be October 16, 2017, because October 15 is a Sunday).

Here is my discussion in the current draft for the next revision (due August 2017) of my Federal Tax Procedure Book (note that the footnote numbers are not the ones that will be in the final text)):

The FBAR was historically required to be filed on June 30 for the prior year.  In 2015, Congress changed the filing date to April 15 (contemporaneously with the individual income tax return due date for calendar year taxpayers, which can be the next succeeding business day if April 15 falls on a weekend or holiday) with the ability to obtain a 6-month extension to October 15 (also contemporaneous with the extended due date for individual income tax returns and also extended to the next succeeding business day if October 15 falls on a weekend or holiday). n1 Under the current instructions, FinCEN grants an automatic extension from April 15 to October 15; the automatic extension applies without any action on the filer’s part other than not filing by the original due date.  n2
   n1 § 2006(b)(11), the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (P.L. 114-41).  The effective date of this FBAR filing provision is the filing year 2016 (i.e., the 2016 FBAR is due April 15, 2017 (actually, on the next succeeding business day), subject to the automatic extension to October 15, 2017 noted in the text).
   n2 FinCEN web page, titled New Due Date for FBARs (12/16/16), viewed 2/1/17, providing in relevant part after noting the statutory due date of April 15 (emphasis supplied):
To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year.  Accordingly, specific requests for this extension are not required.  (Please note: The due date for FBAR filings for foreign financial accounts maintained during calendar year 2016 is April 18, 2017, consistent with the Federal income tax due date.)
One might even say that, as thus formulated, the real filing due date is October 15.

Some helpful web pages (including the one mentioned in fn. 2 above are:

• New Due Date for Filing FinCEN Form 114 -- 12-JAN-2017, here.
• Individuals Filing the Report of Foreign Bank and Financial Accounts (FBAR), here.
• BSA Electronic Filing Requirements For Report of Foreign Bank and Financial Accounts (FinCEN Form 114), here.

New Legislation Affecting FBAR and Tax Matters (8/1/15)

Yesterday, the President signed into law new legislation  H.R. 3236, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, here, which has provisions of interest for Federal Tax Crimes fans.  I was initially told of the signing by a Dennis Brager news letter (Dennis' web site is here.).  I have not yet read the legislation, but I picked up the following items of interest to readers of this blog from a Tax Litigator Blog earlier today.  New Filing Due Dates for FBARs, Partnership and C Corporation Returns! (Tax Litigator Blog 8/1/15), here.

1. FBARs for years 2016 and forward are due on April 15 rather than June 30 and filers may obtain a six month extension.  The filing date(s) thus are the same as the 1040 dates for calendar year individual taxpayers.  The IRS may waive a penalty for a late first time filer.  (As Dennis noted, the IRS always had considerable flexibility in not asserting the penalty anyway, so not clear that this provision will change the practice or perception of authority.)

2.  Partnership and S Corporation returns must be filed by March 15 for calendar year entities (or, if a fiscal year, 2 1/2 months after the end of the fiscal year).

3.  The holding in Home Concrete & Supply, LLC, ___ U.S. ___, 132 S. Ct. 1836 (2012) is legislatively reversed.  That holding was that overstated basis bullshit tax shelters did not give rise to an income omission for the 25% gross income omission in § 6501(e)(1)(A)(i), here.  (See my discussion of the Supreme Court's Home Concrete decision here: The Supreme Court Blesses Taxpayers Sheltering and Hiding Income from Six-Year Statute of Limitations (Federal Tax Crimes Blog 4/25/12), here.  Dennis advised that the effective date for this amendment is: (i) for returns filed after enactment; and (ii) for returns filed prior to enactment, if the Section 6501 assessment statute of limitations had not expired on the date of enactment.

I encourage readers to read the more detailed Tax Litigator Blog entry linked above.  I may add more items or nuance not covered in the Tax Litigator blog entry as I become aware of it.

Information on Filing Delinquent FBARs (7/3/13)

A reader, Virginia La Torre Jeker, provided the following information that I thought deserved a blog:

I called the E-Filing Regulatory Hotline for FBARs (FinCen) and asked if all “late” FBARs must be filed electronically (e.g., for 2012 and earlier years such as 2011 back through 2007). A rep from the E-Filing Regulatory Hotline called me back and explained that “YES”, the late FBARs must be e-filed; the date of the report should be changed on the e-file to reflect the year for the filing of that particular FBAR. He said that currently the e-filing system does not support the capacity to attach a letter or statement  explaining why the FBAR is being filed late. This capacity may become active later this month. They are advising taxpayers to keep all supporting documentation on file because normally the IRS will come back to the taxpayer and ask for it.  If you wish to separately send in a paper letter explaining the late filing, then you should reference the confirmation number you get from the e-filing of the late FBAR(s).

The Regulatory Hotline Number is (800) 949-2732.  The Regulatory Hotline only accepts requests at the number provided.  They do not provide support via email.

Thanks, Virginia.

Virginia is a U.S. tax attorney who practices in Dubai.  I have found her very knowledgeable about the IRS's offshore iniitiatives.  Readers may see her professional summary here.