Skip to content

Welcome to the blog of inTAXicating.ca! Since 2008 we've been writing posts to help Canadians solve their tax issues with the Canada Revenue Agency. If you have any questions, or if you need assistance with any CRA matters including, but not limited to; Collections, Enforcement, Audits, Liens, Back-Filing, Assessments, Director's Liability, s160/325, Taxpayer Relief or the Voluntary Disclosure Program. If you have debt and are considering Bankruptcy or a Consumer Proposal, speak with us first. With over 10-years of CRA experience in the Collections division, our expertise is in the diagnosing and solving of the most complex tax problems.

Tag: June 30

FBAR’s – The June 30th IRS Deadline is Quickly Approaching.

Seal of the United States Internal Revenue Ser...
Seal of the United States Internal Revenue Service.(Photo credit: Wikipedia)

The June 30th deadline to file your Report of Foreign Bank and Financial Accounts, also know as FBAR’s with the IRS is rapidly approaching.  If you are a US person and have more than $10,000 in any foreign financial account (or are a signatory authority) then you need to file these by the deadline.  These accounts include; bank account, brokerage account, mutual fund, trust, or other type of foreign financial account.

The Bank Secrecy Act requires US persons to report annually to the IRS any foreign financial accounts and their dollar amounts, however, under FATCA, those US persons who have not been doing so, will have their information reported for them by Foreign Financial Institutions (FFI’s) to the IRS and the penalties can be quite large.

FBAR’s can be reported to the IRS through Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

Unsure if you need to file FBAR’s to the IRS?

If you are an US person, then you are required to submit this filing if;

1.  You had a financial interest in, or signature authority over, at least one financial account located outside of the US; and
2.  The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
Stepping back for a second, the IRS through FATCA has provided a clear definition of what constitutes an US Person” and you are an US person for taxation purposes if you are;

• US citizen;
• US resident based on the number of days spent in the US during the year;
• US green card holder (even if the green card has expired);
• US created corporations, partnerships, limited liability companies which were created or organized in the US or are owned by US persons;
• US created partnership;
• US estates and trusts – formed under the laws of the US or created by US persons;
• Virtually everyone born in the US;

These rules also catch those with dual nationality, even if such persons are registered taxpayers in a non-US country (the US considers you “foreign” and asks you to complete a Form W8-BEN)  These regulations also can include individuals who were born outside the US but who have at least one US parent.

Worried yet?  So now you probably want to know more about when the FBAR’s are due.

The FBAR is due by June 30th of the year following the year that the account holder meets the $10,000 threshold.  There are no extensions as there are for US personal tax returns.  Filers cannot request an extension of the FBAR due date.

If a filer does not have all the available information to file the return by June 30, they should file as complete a return as they can and amend the document when the additional or new information becomes available.

If you need help filing the FBAR’s you can reach the IRS Monday – Friday, 8 a.m. to 4:30 p.m. Eastern time, at 313-234-6146 for callers outside the US, or send an email to the IRS at FBARquestions@irs.gov.  The email system does not accept actual FBAR reports.

Once completed, the FBAR’s are sent to;

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

If an express delivery service is used, send completed forms to:

IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226

The contact phone number for the delivery messenger service is 313-234-1062. The number cannot be used to confirm that your FBAR was received.

The FBAR is not to be filed with the filer’s Federal tax return.

Alternatively, a FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number (TIN) and the filing period. There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page.  Check or money order should be made payable to the United States Treasury.

The request and payment should be mailed to:

IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Detroit, MI 48232

It is also possible to amend previously filed FBAR’s.  It can be done by;

  • Checking the Amended box in the upper right-hand corner of the first page of the form;
  • Making the needed additions or corrections;
  • Stapling it to a copy of the original FBAR; and
  • Attaching a statement explaining the additions or corrections.

Beginning July 1st, 2013, Mandatory Electronic filing of FBAR forms!

E-filing is a quick and secure way to file FBAR’s and filers receive an acknowledgement of each submission right away.

So if you were required to file FBAR’s and failed to, the consequences can be quite alarming!

Failure to file a FBAR when required to do so may potentially result in civil penalties, criminal penalties or both.

If, as is the case for many Canadians who were not aware of the requirement to file US tax returns, you learned that you were required to file FBARs for earlier years, then you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.  No penalty will be asserted if the IRS determines that the late filings were due to “reasonable cause”.

Otherwise, cumulative FBAR penalties can actually exceed the amount in a taxpayer’s foreign accounts under the penalty provisions found in 31 U.S.C. 5314(a)(5).

Keep copies of what you have sent to the IRS, and the supporting documentation, for a period of five years.  Failure to maintain required records may result in civil penalties,  criminal penalties or both.

The IRS allows filing of FBAR’s back to 2008 on their current form (revised October 2008), and anything older than 2008 can be reported on the FBAR form revised in July 2000.

A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR. The filer should write “(spouse)” on line 26 after the last name of the joint spousal owner. If the only reportable accounts of the filer’s spouse are those reported as joint owners, the filer’s spouse need not file a separate report. If the accounts are owned jointly by both spouses, the filer’s spouse should also sign the report. It should be noted that if the filer’s spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer’s spouse should file a separate report for all accounts including those owned jointly with the other spouse.

If you are a US person with substantial foreign financial assets, you should know that in 2013, the IRS introduced Form 8938 for you to report with your FBAR’s.

Taxpayers with specified foreign financial assets that exceed certain thresholds ($50,000) must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets.  The new Form 8938 filing requirement does not replace or otherwise affect a taxpayers requirement to file FBAR.  The IRS has provided a chart comparing Form 8938 and FBAR requirements, here.

If you need helping getting compliant, or trying to determine your IRS / FATCA plan of action, all you need to do is reach out to us at Intaxicating Tax Services.  With 17-years of Canadian tax experience and 30-years of US tax filing, our team will ensure you provide only what you are required to provide.

Related articles
  • FBAR filing requirements (irsmedic.com)
  • Time is Running Out: Verify Your Clients’ FBAR Obligations Now (aicpa.org)
  • Internal Revenue Service – Expat Information – FBAR Form TD F 90-22.1 (nanlevin.wordpress.com)
  • Mandatory Electronic Filing for FBARs Coming Soon (intltax.typepad.com)
  • FBAR Audit (irsmedic.com)
  • FBAR Due Date – 2013 (fiduciaryincometax.wordpress.com)

Share this:

  • Tweet
  • Email
  • More
  • Share on Tumblr
  • Pocket

Like this:

Like Loading...
Author Warren OrlansPosted on June 18, 2013June 19, 2013Categories taxationTags Bank Secrecy Act, Canada, Canadian, Capital account, extension, FATCA, FBAR, Form 8938, intaxicating, Internal Revenue Service, IRS, June 30, tax help, TIN, toronto, United States, United States Department of the Treasury, US, US tax expert in Canada, W8BEN1 Comment on FBAR’s – The June 30th IRS Deadline is Quickly Approaching.

What is inTAXicating?

inTAXicating is the name chosen in 2008 by Warren Orlans, a Canadian Tax Consultant and former Canada Revenue Agency (CRA) Employee of the Year who worked in the CRA for almost 11-years in their Collections Department.

inTAXicating provides expertise in the area of Tax Liability Solutions and assists Canadians to understand how the CRA operates.

inTAXicating helps Canadians from coast-to-coast with; Collections, Enforcement, Compliance, Non-Compliance, Audits, Liens, Back-Filing, Assessments, Director’s Liability, s160 assessments, Taxpayer Relief, T2, T4, Payroll, and so much more.

inTAXicating offers a free consultation and after one paid meeting, clients are provided with a solution for their tax issue(s).  From there, if you need more assistance, it is available, or you can now handle it yourself.

To get started, send an email to info@intaxicating.ca or to intaxicatingtaxservices@gmail.com.

inTAXicating is located in Toronto, Ontario, Canada, but due to the nature of taxation in Canada most meetings are conducted via Skype or over the phone. Payment can be make via e-transfer.

We are Experienced, Honest and On Your Side.

Business Hours & Contact Information

Toronto-based and Canada-Wide
Email: info@intaxicating.ca or intaxicatingtaxservices@gmail.com.
Hours:
Monday to Friday
8:30am-5pm EST.

Available whenever needed.

Blog Stats

  • 474,647 hits

Looking For Something?

Need to Translate? Click here for Google Translate

Social

  • View inTAXicating’s profile on Facebook
  • View @inTAXicating’s profile on Twitter
  • View WarrenOrlans’s profile on LinkedIn
  • View inTAXicating’s profile on YouTube

inTAXicating Facebook Page

inTAXicating Facebook Page

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,027 other followers

Follow on WordPress.com

Recent inTAXicating Posts

  • You nailed it. twitter.com/MooreintheAM/s… 1 month ago
  • Wait... Wasn't it current Liberal Leader, DelDuca, who built a swimming pool on greenbelt land, knowing it was ille… twitter.com/i/web/status/1… 1 month ago
  • RT @TorontoStar: In the middle of a pandemic, sports cards have become a coveted item in the secondary market. A childhood hobby of many fa… 2 months ago
  • Absolutely make sure your address is up to date so they can send you a cheque. Government cheques never stale dated… twitter.com/i/web/status/1… 2 months ago
  • So, if, at 19-years-old, someone is elected to parliament, they'll qualify for a pension at 25-years-old. Crazy, ri… twitter.com/i/web/status/1… 2 months ago
  • Well, since you asked... I got my pension at 31, when I resigned from the CRA. I rolled it into my RRSP. If I staye… twitter.com/i/web/status/1… 2 months ago
  • You too could get into politics and have your own "fully-funded platinum government pension." Don't hate on him bec… twitter.com/i/web/status/1… 2 months ago
  • I believe he actually voted against handing the Liberals a period of 2-4 years of unlimited spending and taxation (… twitter.com/i/web/status/1… 2 months ago
Follow @inTAXicating
January 2021
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
« Oct    

Canadian Tax Blogs

  • Denton's Canadian Tax Litigation
  • H&R Block Canada – Media Centre – Tax
  • Jamie Golombek
  • Money Sense Taxation
  • Thorsteinssons Tax Blog

FATCA

  • American citizens Abroad
  • IRS vs. Expats
  • Isaac Brock Society
  • Maple Sandbox

Government Tax Authority

  • Canada Revenue Agency
  • Department of Finance
  • IRS
  • IRS Newsroom
  • Securities and Exchange Commission
  • SEDAR
  • U.S. Securities and Exchange Commission

Managing

  • Report On Business Managing

Organization

  • Canadian Tax Foundation
  • IIAC
  • Securities Transfer Association
  • STAC – Securities Transfer Association of Canada

Podcasts

  • PWC Tax Podcasts

tax

  • KPMG Tax
  • Mondaq
  • PWC Canadian Tax News

US Tax Blogs

  • IRS Hitman
  • Mauled Again
  • Our Taxing Times
  • Tax Mama
  • The Wandering Tax Pro
Create a website or blog at WordPress.com
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.
Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
%d bloggers like this: