The deadline for filing Report of Foreign Bank and Financial Accounts,Form TD F 90-22.1 (FBAR) for calendar 2009 is fast approaching. These reports are due by June 30th each year. Unlike the rule for tax forms, FBAR must be received by Treasury on or before the June 30th date to be considered timely filed. Therefore, one should plan accordingly and file the FBAR in sufficient time in advance of the due date. No extension of time to file is permitted.
Penalties can be severe. Persons who are required to file the FBAR and who do not do so by June 30th are subject to a penalty. For a willful violation the penalty can be as high as the greater of $100,000 or 50% of the amount in the foreign account. For a nonwillful violation that is not corrected and for which there is no reasonable cause, the penalty can be as high as $10,000.
Several IRS pronouncements should be considered when working on 2009 FBARs, including Announcement 2010-16 and Notice 2010-23. You can link directly to
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