Filing Deadline Extended for Some:
Filing deferral for certain individuals with signature authority only, effective through April 15, 2017. Per FinCEN Notice 2015-1, the due date for filing FBARs by certain individuals with signature authority over, but no financial interest in, foreign financial accounts of their employer or a closely related entity, to April 15, 2017.
Who Must File an FBAR
United States persons are required to file an FBAR if:
1. the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
Exceptions to the Reporting Requirement
Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:
1. Certain foreign financial accounts jointly owned by spouses
2. United States persons included in a consolidated FBAR
3. Correspondent/Nostro accounts
4. Foreign financial accounts owned by a governmental entity
5. Foreign financial accounts owned by an international financial institution
6. Owners and beneficiaries of U.S. IRAs
7. Participants in and beneficiaries of tax-qualified retirement plans
8. Certain individuals with signature authority over, but no financial interest in, a foreign financial account
9. Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust)
10. Foreign financial accounts maintained on a United States military banking facility.
U.S. Taxpayers Holding Foreign Financial Assets May Also Need to File Form 8938
Taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets, which is filed with an income tax return. Those foreign financial assets could include foreign accounts reported on an FBAR. The Form 8938 filing requirement is in addition to the FBAR filing requirement.