•  
  •  
Request a Free Consultation 
Tax, Estate Planning & Probate Law Center
(732) 623-9800

IRS delinquent FBAR submission procedure

- By : Parag Patel Date : 11-Sep-15

Last spring, the IRS revised its program for delinquent FBAR returns. The IRS offers a new “delinquent FBAR submission procedure”.  See below excerpt from the IRS website.The program is available if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.

You must include “a statement explaining why you are filing the FBARs late”, which many people interpret as a “reasonable cause” excuse explanation.  Taxpayers are warned to carefully craft the statement to persuasively demonstrate reasonable cause.

In such case, many longstanding authorities regarding what constitutes reasonable cause continue to apply, and existing procedures concerning establishing reasonable cause, including requirements to provide a statement of facts made under the penalties of perjury, continue to apply. See, for example, Treas. Reg. § 1.6038-2(k)(3), Treas. Reg. § 1.6038A-4(b), and Treas. Reg. § 301.6679-1(a)(3).

Taxpayers may wish to seek legal counsel in filing the delinquent FBAR submission procedure.

Delinquent FBAR Submission Procedures

Taxpayers who do not need to use either the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but who:

  • have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1),
  • are not under a civil examination or a criminal investigation by the IRS, and
  • have not already been contacted by the IRS about the delinquent FBARs

should file the delinquent FBARs according to the FBAR instructions.

Follow these steps to resolve delinquent FBARS

  • Review the instructions
  • Include a statement explaining why you are filing the FBARs late
  • File all FBARs electronically at FinCEN
  • On the cover page of the electronic form, select a reason for filing late
  • If you are unable to file electronically, contact FinCEN’s Regulatory Help line at 1-800-949-2732 or 1-703-905-3975 (if calling from outside the United States) to determine possible alternatives to electronic filing.

The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.

FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.

http://www.irs.gov/Individuals/International-Taxpayers/Delinquent-FBAR-Submission-Procedures

Related Posts

  • New IRS Guidelines for Willful FBAR violations

    Last week, the Internal Revenue Service released interim guidance (SBSE-04-0515-0025) on foreign bank account report…

  • Top FBAR Reporting Error

    The most common FBAR reporting mistake is simply failing to file. Some U.S. persons continue…

  • IRS Announces New Rules for FBAR Penalties

    There are two types of penalties applicable to FinCEN  Form 114 (Report of Foreign Bank…

  • Previous
  • Next

Parag Patel

Follow me on :

View more post of Parag Patel

Search

Categories

  • Estate Planning and Probate
  • Planning for Tax Minimization

Recent Posts

  • Automatic Form 5471 and 5472 Penalties in Spotlight by 2020 National Taxpayer Advocate Report January 14, 2021
  • Client Case Study: Tax Savings Now January 14, 2021
  • Democratic Win Means Estate Tax Law Changes January 9, 2021
  • Canceled Debt: Taxable or Not January 7, 2021
  • Start 2021 with a few New Year’s tax planning resolutions January 4, 2021
  • Recent Webcast to DC Bar Association on Post-Election Estate Planning and Audits: Tax Considerations For the Unexpected January 1, 2021
  • 2020 New “Universal” Deduction for Charitable Contributions December 7, 2020
  • “Financial interest” or “Signature Authority” in a Foreign Account December 6, 2020
  • Smart Planning for Expected Capital Gains Tax Increases December 4, 2020
  • Tax Strategies to Explore Now November 22, 2020
  • IRS Revises Delinquent International Information Return Submission Procedure (DIIRSP) November 12, 2020
  • Estate Planning for 2021 and Beyond: SLATs November 10, 2020
  • Home
  • About
  • Blog
  • Contact Us
Request a Free Consultation 

Our Other Sites
Patel Law Offices
Patel Law Blog
Late FBAR
IRS Revoked Passport
Late 5471
Late 8938
FL Residency
Patel Law Office 60 Walnut Avenue,Suite 202 Clark, New Jersey 07066
(732) 623-9800 mail@PatelLawOffices.com
  •  
  •