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  • Daniel Gray CPA US Tax Services Toronto Canada

2018 FBAR extended due date, what to write in the late-filing reason box streamlined or otherwise, w


FBAR must be filed electronically through FinCEN’s BSA E-Filing System. The FBAR is not filed with a federal tax return.

Public Law 114-41 mandates a maximum six-month extension of the filing deadline. To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year. Accordingly, specific requests for this extension are not required.

Thus, before the FBAR extended due date of October 15, file streamlined FBARs for each of the most recent 6 years for which the FBAR due date has passed (i.e., is delinquent, and of course timely file the current year FBAR too).

Taxpayers who have not filed a required FBAR and are not under a civil examination or a criminal investigation by the IRS, and have not already been contacted by the IRS about a delinquent FBAR, should file any delinquent FBARs and include a statement explaining why the filing is late. Select a reason for filing late on the cover page of the electronic form or enter a customized explanation using the ‘Other’ option.

When filing as part of the streamlined program you’d separately disclose for the past six years your financial accounts held outside the USA via the online FBAR filing and ticking the “streamlined” box in your online submission. See http://www.ustaxservices.ca/single-post/2017/03/13/FBAR-Fincen-114---the-easy-guideline for FBAR requirements.

IRS says it will not impose a penalty for the failure to file the delinquent FBARs if income from the foreign financial accounts reported on the delinquent FBARs is properly reported and taxes are paid on one’s U.S. tax return, and one has 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.

Those required to file an FBAR who fail to properly file a complete and correct FBAR may be subject to civil monetary penalties. The IRS may assess an inflation-adjusted civil penalty not to exceed $12,459 per violation for non-willful violations that are not due to reasonable cause. For willful violations, the inflation-adjusted penalty may be the greater of $124,588 or 50 percent of the balance in the account at the time of the violation, for each violation.

Help in completing the FBAR is available Monday through Friday, 8 a.m. to 4:30 p.m. Eastern Time, at 866-270-0733 (toll-free inside the U.S.) or 313-234-6146 (not toll-free, for callers outside the U.S.). Questions regarding FBAR can be sent to FBARquestions@irs.gov.

Help with electronic filing questions is available at BSAEFilingHelp@fincen.gov or through the BSA E-Filing Help Desk at 866-346-9478. The E-Filing Help Desk is available Monday through Friday from 8 a.m. to 6 p.m. Eastern Time.

FinCEN’s Regulatory Helpline answers questions regarding BSA regulations and acceptable alternatives to electronic filing at 800-949-2732; or if calling from outside the United States at 703-905-3975.


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