The new highway funding bill congress just passed, HR 3236 affects partnership tax return due dates and FinCEN114 [also referred to as FBARS] return dates starting this upcoming filing season.
Further, if it’s your first time filing an FBAR, the secretary can waive your entire penalty.
Prior to this change, partnership returns, form 1065, were due in April 15 and could be on extension until October 15th. This new rule moves up the deadlines by one month. The rule has been coming for years; as partnership return deadlines interfere with personal returns filing timely.
FBARS used to be due June 30th with no extensions. The penalties were harsh and are still harsh: up to 50% of the assets held in a foreign country and you could visit prison. These penalties are designed against wealth taxpayers hiding income from the IRS [since America taxes your worldwide income; not just income earned in the states and territories]. But the penalties and the due date with no extensions hurt so many Americans who weren’t even aware that being a signer on your parent’s bank account for medical or emergency purposes makes you required to file the FBAR form if the bank account is in a foreign country.
Contact our firm if you have any concerns about how this new bill may affect your business.