As we have talked about many times on this blog, financial accounts and holdings overseas have a massive impact on your taxes — even more so nowadays as the U.S. government pushes other countries to reveal financial information of U.S. citizens who are holding money overseas. One of the forms that people who hold money overseas (that exceeds $10,000) need to complete is the FBAR, or the Report of Foreign Bank and Financial Accounts.
For a long time, the FBAR needed to be handed in at the beginning of the year — but it didn’t coincide with the April 15 deadline for your Form 1040. This disjointed approach likely confused many taxpayers, and it made the whole process far more convoluted than it needed to be.
Thankfully, a new law was recently passed called the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. The law shifts numerous due dates for important forms for Americans — and one of the due dates that was switched was for the FBAR.
The FBAR now must be filed by April 15, synchronizing the due date with your regular tax forms. Also, if you need an extension on your FBAR, the extension will reach the same date as the extended tax filing deadline: October 15.
Though this may seem like a small step, it is a very important one for taxpayers. To anyone who has significant financial holdings overseas, make sure you are organized and prepared for the new April 15 due date for the FBAR.
Source: Accounting Today, “FBAR Deadline Moves Up 3 Months to April 15,” Shannon Smith Retzke and Aaron D. Schumacher, Aug. 14, 2015