Despite the publication of final FBAR regulations in 2011, many U.S. corporations remain confused regarding the FBAR filing requirements, including how the rules affect corporate officers and employees who have signature or other authority over these accounts.
Because the FBAR for calendar year 2012 must be filed by June 30, 2013, officers and employees having signature or other authority over foreign financial accounts need to take steps now in order to comply with this filing deadline.
Who must file?
Generally, FBAR reporting applies to each “United States person” who has a financial interest in, or signature or other authority over, foreign financial accounts that have an aggregate value exceeding $10,000 at any time during the calendar year.
A U.S. person is defined as (1) a citizen or resident of the United States or (2) a domestic entity (including a corporation, partnership, trust, or limited liability company, regardless of whether the entity has made an election to be disregarded for federal income tax purposes).
Deadline for filing 2012 FBARs
The deadline for filing FBARs for calendar year 2012 is fast approaching. In general, FBARs must be received by the U.S. Treasury Department by June 30.
Because June 30, 2013, falls on a Sunday, FBAR filers must plan to have their 2012 FBARs received by Treasury by Friday, June 28, 2013.
- Unlike income tax filings, the FBAR due date is not extended to the next business day when the deadline falls on a weekend.
- In addition, unlike income tax filings, there is no “mailbox rule” with respect to FBARs—so the deadline is measured by the date received, not the date sent.
- The FBAR is to be delivered to the address shown in the instructions to the FBAR (Rev. January 2012).
A street address is provided in the FBAR instructions if an express delivery service is used. Although paper filings still are acceptable for timely filed 2012 FBARs, filings made after June 30, 2013, are required to be done electronically (using the BSA E-Filing System).
Filing extension available to certain officers/employees
A narrow exception from reporting is available to certain officers and employees with signature or other authority over foreign financial accounts of corporations subject to specific types of federal regulation (e.g., U.S. publicly traded companies).
As a result of questions raised regarding the limited scope of this reporting exception—for example, financial accounts owned by controlled foreign corporations fall outside the reporting exception—an extension of time to report foreign accounts by certain employees and officers with authority over such accounts has been granted by Treasury. The most recent extension permits certain employees and officers with authority over corporate accounts until June 30, 2014, to report such foreign accounts on their individual FBARs.
Read a 2013 report [PDF 237 KB] prepared by KPMG LLP: What’s News in Tax: Navigating the FBAR Maze
For more information, contact a tax professional with KPMG’s Washington National Tax practice: