Holders of foreign bank accounts had until today June 30th, 2011, to file a foreign bank account report TDF 90-22.1 (FBAR) with the Internal Revenue Service (IRS). The IRS recently issued a press release reminding foreign bank account holders of FBAR reporting requirements and deadlines.
The June 30th, 2011 FBAR deadline refers to the 2010 calendar year. The reporting requirement applies only to individuals with a financial interest in or signature authority over foreign bank accounts if the aggregate value of those accounts exceeded $10,000 on any one day in 2010. The FBAR is not a tax return and foreign bank holders may be required to file even if their foreign bank account does not generate taxable income. Requests for extensions will not be granted. The FBAR must be received by June 30th (not just mailed by that date) to be considered timely.
Certain individuals may be subject to later deadlines, including foreign bank account holders eligible for extension under IRS Notice 2009-62 or 2010-23 and certain financial professionals.
Willful failure to file an FBAR may result in criminal and civil penalties, including fines that can exceed 6 times the balance of the foreign account. Foreign account holders who file late FBARs may attach a showing of reasonable cause to avoid penalties. Foreign account holders with past unreported taxable income may make a voluntary disclosure under the IRS's Offshore Voluntary Disclosure Initiative (OVDI) and avoid or decrease penalties.