Americans who have bank accounts in foreign countries may need to file a special report with the U.S. Treasury Department.
The Report of Foreign Bank and Financial Accounts (FBAR) is required of individuals and businesses if they have a financial interest in a bank account or other type of financial account that's located at a bank or financial institution outside the United States and if the aggregate balance of all their accounts was at least $10,000 at any time during the year. The report is due on or before June 30, 2013, to disclose account holdings for the year 2012.
Be aware, that this is the last year the Treasury Department will accept FBARs filed on paper. Starting July 1, 2013, the Treasury Department will require all FBARs to be filed electronically.
June 30th Falls on a Sunday
This year, the June 30th deadline to file the FBAR falls on a Sunday. According to the instructions, "The FBAR must be received by the Department of the Treasury on or before June 30th." Accordingly, people cannot rely on a timely postmark date and should mail in their FBARs with plenty of time to make sure that the document is received at the Detroit FBAR processing center on or before Sunday, June 30th. For reports mailed from inside the United States, I recommend sending them via certified mail with return receipt requested, as this will provide you with proof that your FBAR was received by the Treasury Department. For reports mailed from outside the United States, be sure to use a delivery method that will guarantee delivery by Friday, June 28.
When you finish your FBAR, mail it to the addresses provided below. If you use the United States Postal Service:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If you use a private delivery service such as FedEx, DHL, UPS, and so forth, use the following street address:
IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
Delivery messenger service contact telephone number: (313) 234-1062.
The foreign bank account report can be electronically filed at the following Web address: bsaefiling.fincen.treas.gov/Enroll_Individual.html.
Only the filing individual can electronically file the FBAR. Accountants, attorneys and other practitioners are not permitted to electronically file FBARs on behalf of their clients.
In honor of Small Business Week, the Internal Revenue Service will be providing two Web-based seminars covering tax issues relevant to small businesses.
- "Small Business Owners: Get All the Tax Benefits You Deserve," June 18th, 2013, at 2 pm Eastern.
- "Avoiding the Top Tax Mistakes that Small Businesses Make," June 20th, 2013, at 2 pm Eastern.
To learn more about these seminars and to sign up, visit the IRS Web page, Webinars for Small Businesses.
The IRS also has videos from previous training seminars archived at www.irsvideos.gov/SmallBusinessTaxpayer.
The second installment of estimated tax payments for the year 2013 are due on Monday, June 17, 2013. The deadline for sending in estimated tax payments normally falls on June 15th. Because June 15th is a Saturday this year, the deadline is moved to the following Monday.
Estimated tax payments can be remitted online using the Electronic Federal Tax Payment System. Payments can also be mailed in using Form 1040-ES with a check. Checks should be made payable to the United States Treasury, and in the memo field indicate the Tax Year and Tax Form; for example, "Year 2013 Form 1040-ES." After this write your Social Security Number.
Americans who live outside the United States have a special filing deadline of June 17, 2013, to file and to pay their 2012 U.S. taxes. The IRS explains this automatic extension as follows:
"Automatic 2-month extension. You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U.S. citizen or resident alien, and on the regular due date of your return:
"You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or
"You are in military or naval service on duty outside the United States and Puerto Rico."
Further, the IRS notes, "Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return" (from Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, section on "When to File and Pay").
The two-month automatic extension normally is good until June 15th (two months after April 15th). This year, however, June 15th falls on a Saturday. Since the filing deadline falls on a weekend, the deadline is pushed back to the following Monday, June 17th.
If additional time is needed, Americans living abroad can request additional time to file their return by submitting Form 4868, to request an extension until October 15, 2013. Read More...