The IRS has reminded taxpayers that persons owning a bank or other financial account in a foreign country, or having signature authority over such an account, may be required to report the account to the Department of Treasury by June 30 of each year. Foreign account owners may have to report the accounts to the government even if the accounts do not generate any taxable income. U.S. persons are required to file a Report of Foreign Bank and Financial Accounts (FBAR), Treasury Form TD F 90-22.1, each year if they have a financial interest in or signature authority over financial accounts, including bank, securities or other types of accounts, in a foreign country if the aggregate value of these financial accounts exceeds $10,000 at any time during the year.
For 2010, the due date for filing the FBAR is June 30, 2011. However, some financial professionals will have until June 30, 2012, to file. Extensions of time to file an FBAR will not be granted. There are significant criminal and civil penalties for noncompliance with the FBAR filing requirements. Electronic filing is not available for FBAR filing.
IR-2011-70, June 24, 2011