FBAR Deadline 2019 - When is the Last Day to Report your Accounts? (Krantz Attorneys)

FBAR Deadline 2019 – When is the Last Day to Report your Accounts? (Krantz Attorneys)

FBAR Deadline 2019 – When is the Last Day to Report your Accounts?

FBAR Deadline 2019: When is the Last Day to Report your Accounts? The FBAR Deadline 2019 is on automatic extension. In other words, the deadline to file the 2018 FBAR (in 2019) is the same day your tax returns are due, including extension. In addition, Taxpayers do not need to file any specific extension with the IRS or FinCEN (currently, subject to change) to request an extension — in other words, it is on FBAR Automatic Extension.

FBAR Deadline 2019

If you are the owner of foreign financial accounts, and you meet the threshold requirements for having to report the balances of these foreign accounts to the U.S. Government, you may have to file an FBAR. Therefore, it is important to know the deadline to file an FBAR.

Common Questions about the FBAR Filing Deadline:

  • Is the FBAR part of my tax return?
  • What if I did not file the FBAR previously?
  • Are there penalties for not filing the FBAR?
  • Can I just file past FBARs?
  • What are the IRS Amnesty/Voluntary Disclosure Programs?

The FBAR is not the most difficult of international tax forms. It does not require accounting or bookkeeping skills. Essentially, you have to locate the accounts’ maximum balance – which can be difficult.

You have until October to File the FBAR

Depending on the type of account(s) you have, and whether the foreign financial institution provides the data may impact the time it takes you to complete the task.

But, the two main issues involving the FBARs deal with the penalties for non-filing — which can be tough.

The FBAR form is filed annually by any individual, entity, trust, etc. who has ownership, co-ownership or signature authority over foreign bank accounts and foreign financial accounts, which have an aggregate balance of more than $10,000 (USD) on any day of the year.

The deadline for filing the FBAR is the same as your tax return, April. Therefore, your 2018 FBAR is due by April 2019. And, if you applied for an extension, then the FBAR coincides with the filing date of the Tax Return.

The memorandum can be found here.

Is the FBAR Part of my Tax Return?

The FBAR is not part of your tax return. Rather, it is a separate form you can download from the FinCEN website. (In years past, it was submitted on paper with your tax returns; now it is submitted electronically through the FinCEN website.

What if I Did Not File the FBAR Previously?

If you did not file the FBAR previously, then you are out of compliance.

Penalties for Not Filing the FBAR?

Yes. Unfortunately, the penalties can be severe (but not always)

FBAR Penalty Structure

Not all FBAR Penalties are the same. Sometimes, the IRS penalties for unfiled or late FBARs are bad, and sometimes, well…they’re not so bad. You may even receive a Warning Letter in Lieu of Penalty. It jut depends on the different facts and circumstances of your situation

FBAR Penalties can be Civil or Criminal. They can then be broken down further, but the threshold question, is whether the IRS will get you for Civil (money) or Criminal (money, and worse).

FBAR Civil Penalties

Civil FBAR Penalties are limited to monetary penalties. A civil FBAR Penalty is a penalty that is focused on monetary fines or warning letters (waivers) — without any risk of criminal investigation or prosecution.

U.S. Code citationCivil Monetary Penalty DescriptionCurrent Maximum
31 U.S.C. 5321(a)(5)(B)(i)Foreign Financial Agency Transaction – Non-Willful Violation of Transaction$12,921
31 U.S.C. 5321(a)(5)(C)Foreign Financial Agency Transaction – Willful Violation of TransactionGreater of $129,210, or 50% of the amount per 31 U.S.C.5321(a)(5)(D)
31 U.S.C. 5321(a)(6)(A)Negligent Violation by Financial Institution or Non-Financial Trade or Business$1,118
31 U.S.C. 5321(a)(6)(B)Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business$86,976

Penalties for Civil FBAR can be Broken down into two (2) categories:

  • Willful FBAR Penalties
  • Non-Willful FBAR Penalties

Non-Willful FBAR Penalties

These FBAR Penalties are typically the least severe penalties. An FBAR non-willful penalty is a “lower-level” penalty for not filing the FBAR. The non-willful penalties can be high, BUT, typically they are not as high as willful penalties.

Willful FBAR Penalties and (Reduced) Willfulness

The Willful FBAR Penalty is typically more severe. An FBAR Willful Penalty is penalty for acting willful, willfully blind, or with reckless disregard in not filing the FBAR. We have provided detailed explanations and analyses in our free International Tax Law library about these different terms, and what they mean.

FBAR Criminal Penalties

Criminal FBAR Penalties may include monetary penalties and incarceration. This is when the IRS refers the matter to the Department of Justice (DOJ) or other 3 letter government faction for criminal investigation and possible prosecution. These are not very common, but unfortunately they are on the rise.

U.S. Code citationCriminal Violation & DescriptionCriminal Penalty
31 C.F.R. §103.59(b) Willful – Failure to File FBAR or retain records of accountUp to $250,000 or 5 years or both
31 C.F.R. §103.59(c) Willful – Failure to File FBAR or retain records of account while violating certain other lawsUp to $500,000 or 10 years or both
31 C.F.R. §103.59(c)  Knowingly and Willfully Filing False FBAR$10,000 or 5 years or both
Civil and Criminal Penalties may be imposed together. 31 U.S.C. § 5321(d).See StatutesSee Statutes

A few important considerations:

What Happens if you File the FBAR Late?

No. If you just go back and file past FBARs without submitting to one of the approved Voluntary Disclosure/Amnesty Programs, you may be subject to the penalties listed above, along with other violations if you are willful — such as Tax Fraud and/or Tax Evasion.

What are the IRS Amnesty Programs for Filing Past FBAR?

If you are out of compliance, the penalties can be severe. Therefore, you may consider entering IRS offshore voluntary disclosure/tax amnesty, before it is too late.

Krantz Attorneys, A PLC

We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

International Tax Lawyers - Krantz Attorneys, A PLC

International Tax Lawyers - Krantz Attorneys, A PLC

Krantz Attorneys: Our international tax lawyers practice exclusively in the area of IRS Offshore & Voluntary Disclosure. We represent clients in 70+ different countries. Managing Partner Ezra Krantz is a Board-Certified Tax Law Specialist Attorney (a designation earned by < 1% of attorneys nationwide.). He leads a full-service offshore disclosure & tax law firm. Ezra and his team have represented thousands of clients nationwide & worldwide in all aspects of IRS offshore & voluntary disclosure and compliance during his 20-year career as an Attorney.

Ezra holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Krantz's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.
International Tax Lawyers - Krantz Attorneys, A PLC

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