Delinquent FBAR Submission –
Historical Perspective – Delinquent FBAR Submission
On Wednesday, June 18, 2014 the IRS re-introduced an expanded and eased Streamlined program which was originally introduced June 26, 2012 to become effective September 1, 2012 for taxpayers not under an IRS initiated civil or criminal examination. As part of that new Streamlined program the IRS introduced the new Delinquent FBAR Submission Procedures.
If no Streamlined is required (i.e.: since there are properly filed U.S. income tax returns and information returns reporting all income accurately, except no FinCEN FBAR Form 114s filed) to file delinquent or amended tax returns and pay additional tax but:
1) the taxpayer needs to file delinquent FinCEN FBAR Form 114s,
2) the taxpayer is not under civil examination or criminal investigation, and
3) the taxpayer has not already been contacted by the IRS re the delinquent FinCEN Form 114s,
The guidance under the newly released Delinquent FBAR Submission Procedures is that the taxpayer should file delinquent FBARs quietly. The IRS will not impose a penalty for failure to file delinquent FBARs if you properly reported on your U.S. income tax returns and paid all tax, the income from the Foreign Financial Assets (FFA) reported on the delinquent FBARs and there has been no contact re an income tax examination or request for delinquent returns for those years for which the delinquent FBARs are submitted.
Information on Delinquent FBAR Submissions may be found at: http://www.irs.gov/Individuals/International-Taxpayers/Delinquent-FBAR-Submission-Procedures
Protax has completed and are in process of completing thousands of such Streamlined filings.
Please contact us for a free consultation and for further details.