FinCEN Extends Deadline for FBAR Filing Related to Notice 2022-1
December 21, 2023
The Financial Crimes Enforcement Network (FinCEN) has extended the timeframe for certain reports of Foreign Banks and Financial Accounts (FBAR) filings. The extension is prompted in response to the notice of proposed rulemaking (NRPM) released by FinCEN on March 10, 2016, as per FinCEN Notice. The notice seeks to amend the regulations governing Bank Secrecy ACT (BSA) requirements related to FBAR.
Moreover, the proposed amendments seek to address concerns raised by the public regarding the filing requirements and their relevance to US individuals who have the authority to sign but no interest in foreign financial accounts.
Following the Bank Secrecy Act, every US person, including a citizen, corporation, limited liability company, trust, or estate is required to annually report specific foreign financial accounts such as bank accounts, brokerage accounts, and mutual funds to the Treasury Department. The reporting process involves filing FBAR using FinCEN Form 114.
The US individuals are mandated to file FBAR if they have financial in or authority over at least one financial account located outside of the United States with the combined value of a foreign financial account exceeding $10,000 within the reported calendar year.
About FinCEN Notice 2022-1
On December 09. 2022, FinCEN issued Notice 2022-1 extending FBAR filing to April 15, 2024, for certain US individuals holding signature authority over foreign financial accounts with no official interest in them. FinCEN has previously extended deadlines for individuals facing similar circumstances.
Per earlier notices, FinCEN received queries after making modifications to FBAR regulations, leading to further examinations of specific exemptions. The proposed amendments in the NRPM seek to manage the previous exemptions. However, the proposed rule is still in progress, FinCEN is extending FBAR filing to April 15, 2025, for individuals whose reporting of signature authorities was previously granted extension under notice 2022-1.
FinCEN is taking initiatives to enhance transparency and address challenges imposed while meeting regulatory requirements. Recently, FinCEN has proposed a final rule to extend the deadline for certain reporting companies to submit their Beneficial Ownership Information (BOI) Reports. The extension aims to provide extra time to companies created or registered in 2024 to get familiarize themselves with the guidance and address any queries related to the completion of BOI reports.
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