June 4, 2010 / Law Alert

Offshore Foreign Bank and Financial Account Reporting Due Soon

The Treasury Department and Internal Revenue Service (IRS) have made enforcement of foreign bank and financial account reporting obligations a top priority for both corporate and individual taxpayers. Reporting is required on the taxpayer’s regular tax return and, if the account is large enough, also on a special form known as the Report of Foreign Bank and Financial Accounts (FBAR). The FBAR is due annually by annually June 30 for accounts June 30 maintained during the previous calendar year. Penalties for noncompliance can be extremely severe.