Global Tax Alert | 10 June 2013

FBARs to report financial interests in, or signature authority over, foreign financial accounts, are due 30 June 2013

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This Alert serves to remind taxpayers of the upcoming 30 June 2013 deadline for filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), to report financial interests in, or signature authority over, foreign financial accounts.

Background

On 8 January 2013, an Alert was issued entitled, “Treasury grants further extension of time for reporting signature authority (FBAR, Form TD F 90-22.1) over certain foreign financial accounts.” (See International Tax Alert, Treasury grants further extension of time for reporting signature authority (FBAR, Form TD F 90-22.1) over certain foreign financial accounts, dated 8 January 2013.) That Alert concerned a series of filing extensions (the latest being FinCEN Notice 2012-2) that FinCEN granted to certain officers and employees of publicly traded or widely held companies with signature authority over foreign financial accounts held by group members.

However, the filing extensions do not provide any additional time to report financial interests in foreign financial accounts. Nor do they provide additional time to report signature authority over accounts owned by groups that do not have a class of stock listed on a US public exchange and that are not financial institutions or foreign-listed publicly traded groups.

Implications

In general, and subject to certain exceptions, persons having either a financial interest (as defined) or signature authority (as defined) over a foreign bank, brokerage or other financial account during a calendar year must report it to FinCEN (not the IRS) by 30 June of the following year on Form TD F 90-22.1.

Caution: This is not a tax filing, so FinCEN must receive the TD F 90-22 no later than 30 June 2013; the filer cannot rely on the postmark to establish timely filing.

This will be the last year individuals may file paper FBARs. Beginning 1 July 2013, individuals must file using FinCEN’s electronic filing system.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP, Tax Controversy and Risk Management, Washington, DC
  • Elvin Hedgpeth
    +1 202 327 8319
    elvin.hedgpeth@ey.com
Ernst & Young LLP, Tax Controversy and Risk Management, Pittsburgh
  • Frank Cannetti
    +1 412 644 0571
    frankw.cannetti@ey.com

EYG no. CM3523