tip of the Month: Taxpayer Filing Requirements for Foreign Recounts.

• Position: CAMICO Insurance

If your client has a financial interest in, or signature authority over, any foreign accounts, certain filing requirements with the U.S. Department of the Treasury, in addition to the IRS, may apply. Filing requirements also may apply to taxpayers that have direct or indirect control over a foreign or domestic entity with foreign financial accounts, even if the taxpayer does not have foreign account(s).

The filing deadline for the Report of Foreign Bank and Financial Accounts (FBAR) required by the Treasury is April 15 and follows the federal income tax due date guidance, which notes that if the tax due date falls on a weekend or legal holiday, the form is considered timely filed if filed on the next business day. An automatic six-month extension is available. Electronic filing of the FBAR is mandatory using the Bank Secrecy Act e-filing system for the Financial Chimes Enforcement Network. Tax preparers must receive a signed consent form from the client prior to submitting the foreign reporting form. If the tax preparer does not receive the client's signed authorization to file the client's foreign reporting form, the tax preparer will not be able to file any of the required disclosure statements on the client's behalf.

Additionally, the IRS requires information reporting on foreign interests or activities under applicable IRC sees, and related regulations, and the respective IRS tax forms are due when the client's income tax return is due, including extensions. The IRS reporting requirements are in addition to the U.S. Department...