On July 31, 2015, President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act. Among various tax changes, this Act provided for a change to the filing deadline for FinCEN Report 114 (FBAR).
Although an earlier article previously reported on how the new law updated estate tax provisions, the modifications of the foreign reporting requirements and deadlines should not go unnoticed. For filings of the FinCEN Report 114 (known as the FBAR) for taxable years beginning after December 31, 2015, reports are now due on April 15. Such reports are allowed a maximum six-month extension.
This is a major shift from the previous June 30 due date when extensions were not allowed. With the addition of a potential six-month extension period, taxpayers required to file the FBAR actually will have more time to file if needed.
Please remember that if you had foreign accounts that in the aggregate exceeded $10,000 at any time during the year, you must file the FinCEN Report 114 (FBAR). The consequences for not filing are extreme and financially damaging, including willful and non-willful civil penalties, and even criminal sanctions.