Foreign Bank Account Reports Due June 30th
This particular form has been substantially revised. Specifically, the Treasury now wants to know the exact amount hold in foreign accounts, the full address of the bank where the account is held, and has expanded the definition of a foreign account to include pre-paid credit and debit cards.
I previously alerted readers to a very good summary of the revised foreign bank account report from PricewaterhouseCoopers. I also wish to alert readers to a rather comprehensive article by Michael Miller from the International Tax Journal that covers in detail all ins-and-outs of the revised foreign bank account report, including under what circumstances penalties could be imposed. The article can be accessed at: Anti-Deferral and Anti-Tax Avoidance: The New FBAR is Here (pdf, 6 pages).
Comments
Very good quick overview of this topic. I understand the IRS is going to pursue this issue very aggressively and the potential penalties are devastating.
It does appear that way, doesn’t it?
I have seen conflicting information as to whether the form must be RECEIVED by June 30 or can be POSTMARKED by June 30.
Are you able to cite a source and the correct answer?
Jeff, a most excellent question. I researched this further, and was quite surprised by what I found out. I have updated by article on the FBAR to include the following information:
“The instructions for this form does not make this clear, but the foreign bank account report must be received by the Treasury Department by June 30th, instead of being postmarked by that date. Quoting from the Internal Revenue Manual section 4.26.16.3.7, ‘The FBAR is considered filed when it is received in Detroit, not when it is postmarked.’”
Now the Internal Revenue Manual is only a handbook of processing procedures used by the IRS to process various types of reports and requests; it’s not substantive law. However the IRM is making it clear that FBARs are considered filed when they are received. Hence, I am now of the opinion that it’s imperative to obtain proof of delivery (such as certified mail with return receipt, or delivery confirmation from priority mail or express mail) as a protective measure.