FBAR Filing Deadline 2021
FBAR Filing Deadline 2021: The FBAR Filing process works similar to filing a tax return. Just as a person files a tax return with the IRS in the current year, to report for the prior year — the same holds true for foreign bank account reporting. For example, in 2021, US Persons who own foreign accounts and meet the threshold requirement for reporting foreign accounts, will report their foreign bank and financial account maximum account value for year 2020. The FBAR is filed electronically directly at the FinCEN website. FinCEN is the Financial Crimes Enforcement Network — but don’t let the name scare you. In fact, since 2003 it is the Internal Revenue Service (IRS) who is responsible for enforcing the FBAR (for better or for worse).
Lets’ review the FBAR Filing Deadline and a few tips to go along with it:
Due Date for FBAR 2021
The due date for filing the FBAR is the same time a person’s tax return is due. So for individuals in the United States, the due date for filing the 2020 FBAR is April 15, 2021 (or a different date if it falls on a weekend or holiday).
But, the FBAR is an automatic extension and therefore filers have until October 15 to file their FBAR.
In 2020, due to COVID (and IRS error) most filers had an additional extension through October 31,2020 to file the FBAR.
*Please note the time to file the FBAR is subject to change, and the US government has the right to terminate the automatic extension rule — so it is important to double-check as you get closer to April.
FBAR is Not Just for Individuals
The FBAR filing deadline is not just for individuals. Corporations, Trusts and Estates may also have an FBAR filing requirement if they meet the threshold for reporting.
In addition, if a person has signature authority over a foreign account (possibly for a relative or employer), they also have to file. In fact, even if a person does not have to file a tax return, they will still have to file the annual FBAR if they meet the requirements for filing. this is common for international information reporting forms such as Forms 3520 and 5471 as well.
Penalties and Late Filing
When a person does not file their FBAR timely, they may be subject to fines and penalties.
Since the fines and penalties are not technically a “tax,” disputing the penalty can be a headache — with Tax Court not typically being an option. If you have not filed the FBAR in prior years, it is important to get into compliance first before submitting the current year FBAR — as to avoid what is referred to as a “Quiet Disclosure”
Late FBAR Filing Deadline Amnesty
if you or your tax preparer have not properly filed the form in prior years, you are not alone. In fact, The IRS has developed various FBAR Amnesty Programs to assist you with getting into compliance for prior years.
Here is a list of the different programs:
- Voluntary Disclosure Program (VDP or “New” OVDP)
- Streamlined Domestic Offshore Procedures
- Streamlined Foreign Offshore Procedures
- Delinquency Procedures
- Reasonable Cause
In conclusion, the FBAR filing deadline is important. When a person has foreign bank and financial accounts (Bank Accounts, Life Insurance or Pension for example) and meet the threshold for filing — they may have an FBAR filing requirement. The FBAR Filing due date coincides with the tax return filing due dates, but those dates are subject to change, as was the case in 2020.
If you are out of compliance for prior years you should take care of that first or simultaneously before filing the current year FBAR.
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