Extension available to file FBAR
The Internal Revenue Service has issued Notice 2009-62, which extends until June 30, 2010 the filing date for filing the Report of Foreign Bank and Financial Accounts (FBAR) for 2008 and earlier calendar years with respect to their foreign financial accounts for:
(i) persons with signature authority over, but no financial interest in, a foreign financial account, and
(ii) persons with a financial interest in, or signature authority over, a foreign commingled fund.
When do you file a Report of Foreign Bank and Financial Accounts(FBAR)
Generally if you own or have authority over a foreign financial account, including a bank account, brokerage account, mutual fund, unit trust, or other types of financial accounts, then you may be required to report the account yearly to the Internal Revenue Service. Under the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (FBAR), if
1. The person has a financial interest in, or signature authority (or other authority that is comparable to signature authority) over one or more accounts in a foreign country, and
2. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts
Hence, holding a foreign account requires some reporting though no income is earned on such account. Checking the appropriate block on Form 1040 Schedule B, and filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, satisfies the account holder’s reporting obligation.
The Form TD F 90-22.1 must be mailed on or before June 30 of the following year to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621.
The FBAR is not to be filed with the filer’s Federal income tax return.
The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. There is no extension available for filing the FBAR.
Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.