IRS Reminds Taxpayers of June 30 Deadline

We’re halfway through June, and the IRS wants to make sure that the deadline for some foreign accounts isn’t forgotten while everyone is planning their July 4 festivities. Today they issued information about two important forms that will be due on June 30: Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and Form 8938, Statement of Specified Foreign Financial Assets. FBAR, which applies to taxpayers whose aggregate foreign account holdings are greater than $10,000, must be filed electronically to the Treasury Department Financial Crimes Enforcement Network (FinCEN). The press release notes that FinCEN last year saw an 8 percent increase in FBAR filings, receiving 1,163,229 in 2015. Over the last five years, FBAR filings grew by 17 percent. To avoid penalties, the IRS recommends that potentially affected taxpayers should check to see if they are subject to the filing requirement. Since the IRS is implementing the Foreign Account Tax Compliance Act (FATCA) this year, taxpayers with foreign accounts exceeding $50,000 must file Form 8938 to disclose that information. For more information, the IRS maintains an “International Taxpayers” webpage that includes links for “Taxpayers Living Abroad,” “Forms and Pubs for International Taxpayers,” “Currency Exchange,” and more. Once your clients have satisfied their foreign asset reporting responsibilities, they won’t have to worry about that particular deadline while grilling hotdogs and watching fireworks paint the night sky. Source: Internal Revenue Service