Some FBAR Filers Granted Additional Time
Published on by Lauren Huster in International Business, Tax Services
Some U.S. individuals required to file the Foreign Bank Account Report (FBAR) are getting a break on filing time under a new extension announced by the Financial Crimes Enforcement Network (FinCEN). It doesn’t apply across the board, though. Here’s what you need to know.
Who’s required to file the FBAR?
Since the Bank Secrecy Act was signed into law, A U.S. person, including a citizen, resident, corporation, partnership, limited liability company, trust, and estate, must file an FBAR to report:
- a financial interest in or signature or other authority over at least one financial account located outside the United States if
- the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
The $10,000 requirement at any time is an important one – if the aggregate value exceeds $10,000 even briefly, the FBAR is required – which may make it challenging for filers.
On the other hand, the filing requirements for those who have signatory authority (able to access or manage foreign accounts without benefiting from them) have been less clear.
When is the FBAR due?
A foreign bank account report is due April 15th following the calendar year reported. There is an automatic extension to October 15th.
What changed – and why?
FinCEN has announced an extension of time for certain U.S. individuals who have signature authority over, but no financial interest in, foreign financial accounts for calendar year 2024.
Individuals who qualify have until April 15, 2026, for the 2024 calendar year reporting if there is no financial interest. All filers who have financial interest still need to file by October 15, 2025.
Why make the change? To address uncertainties for those who have signatory authority but don’t benefit from the accounts, FinCEN issued a Notice of Proposed Rulemaking (NPRM) in March 2016 to clarify the FBAR filing requirements. Since the NPRM has yet to be finalized, FinCEN has granted multiple filing deadline extensions for impacted individuals.
Next Steps
You might also be interested in more detail on the FBAR from our International Tax team – review this related post to dig deeper, or watch this short video where we unpack filing requirements and the intent of the FBAR.
If you have any questions or believe you may need to file, please connect with a Barnes Dennig tax expert to questions you have regarding your specific tax situation. We’re here to help.
