Taxpayers with Foreign Bank Accounts Affected by U.S. Natural Disasters Get FBAR Deadline Extension|
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If you are a U.S. taxpayer that typically files a Foreign Bank Account Reporting (FBAR) form on FinCEN 114 and you have been affected by the recent natural disasters in the U.S., such as the California or Oregon Wildfires, the Iowa Derecho, and Hurricanes Laura or Sally, the deadline for filing your FBAR has been extended to December 31, 2020.
This extension provides an additional two months from the original extension date of October 15, 2020, and applies to those whose records are located in the disaster areas, even if the taxpayer does not reside there.
U.S. citizens and residents are required to file FBAR if investments in foreign banks exceed $10,000 at any point within the tax year. Failing to file your FBAR can have steep consequences, including a $10,000 penalty for each unreported account levied by the IRS.
Aprio can assist with current year filings. Additionally, if you’re facing penalties for prior year noncompliance, Aprio can help you determine whether you may be eligible for penalty relief under various IRS programs. Contact your Aprio advisor or Cheryl Leydon for assistance.