2012 FBAR due by June 30, 2013

U.S. persons having interests in or signature authority over a foreign financial account must file an annual report with the U.S. government if the maximum account value exceeds US$10,000 on any day during the calendar year.  A foreign exchange rate is used for conversion purposes.  The IRS provides conversion rates here. 

The 2012 Report of Foreign Bank and Financial Account (Form TD F 90-22.1, termed the “FBAR”) must be received by the U.S. Treasury Department in Detroit, Michigan on or before June 30, 2013.  The normal postmark rule for the timely mailing of tax returns is not applicable.  In addition, no extension of time is permitted.  This year June 30^th falls on a Sunday.  This means that you should ensure that the FBAR is received by June 28^th as the government’s offices are generally closed on weekends.  Significant penalties exist for late or non-filing.

An alternative to using a paper Form TD F 90-22.1 is to submit the FBAR electronically through the Bank Security Act e-filing system.

Owners of entities that are required to file an FBAR must also file an FBAR at the owner level if they have more than a 50% direct or indirect ownership interest. 

Be sure to also check the appropriate boxes at the bottom of Schedule B, Form 1040, and to include any account earnings in your U.S. income tax return.