WASHINGTON - Last week, the Internal Revenue Service reminded U.S. citizens and resident aliens, including those with dual citizenship, with a foreign bank or financial account that a new deadline now applies to reports for these accounts.
New Deadline for Reporting Foreign Accounts
Congress changed the deadline for filing the annual Report of Foreign Bank and Financial Accounts (FBAR) to match Tuesday's federal income tax return. This means that the 2016 FBAR, Form 114, must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) by April 18, 2017.
For the first time, FinCEN will now grant filers missing the April 18 deadline an automatic extension until Oct. 16, 2017 to file the FBAR. Specific extension requests are not required. Previously, FBARs were due on June 30 without exception.
In general, the filing requirement applies to anyone who had an interest in, or signature or other authority, over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2016. Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them.
Most U.S. Citizens Abroad Need to File
An income tax filing requirement generally applies even if a taxpayer qualifies for protection against double taxation through the Foreign Earned Income exclusion or the Foreign Tax credit. However, a U.S. income tax return must be filed to claim this protection.
Citizens and "Green Card" holders who live abroad have an extra 60 days to file their income tax returns until June 15, 2017. Tax payments are still due on April 18, and interest will apply to any payment received after that date. More details can be found here.
Dahl Tax Law offers a step-by-step guide to preparing and filing an Foreign Bank Account Report. Get yours here.