June 30 is the deadline for individuals and other entities to file all required FBAR forms. The deadline is not like the typical postmark deadline that most associate with the filing of your tax return. The Department of Treasury requires this form to be received on or before June 30 of the year following the calendar year being reported. The FBAR must be mailed to the following address:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is required for a timely filed FBAR, address the parcel to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
Failure to file the FBAR can result in severe penalties being assessed against you. For the past several years, the Department of the Treasury, through the IRS, has made FBAR compliance and enforcement an area of focus. They have offered several programs by which taxpayers who have not been in compliance with the filing requirements can come forward under a structured reporting program. This program is called the Offshore Voluntary Disclosure Program, and should you believe you need to avail yourself of this program it would be best to seek the advice of counsel.
In Offshore Tax Evasion: IRS Has Collected Billions of Dollars, but May Be Missing Continued Evasion the GAO reported in April 2013 that more than 10,000 people may have tried to avoid the assessment of the FBAR penalties by amending returns and filing late FBAR’s. The Quiet Disclosure is done in the hopes that the IRS does not single any one taxpayer for the application of the appropriate penalties. In essence, the taxpayer is playing an audit lottery, whereby they hope the IRS is too overwhelmed with filings that they have a minimal chance of being targeted specifically. The GAO also reported that many taxpayers are apparently attempting to file properly as a going-forward concern and failing to amend or file for prior years.
The IRS has agreed with the GAO’s report, and has acknowledged that they will adopt the GAO’s method of review to help spot taxpayers who are looking to skirt the FBAR penalties. The failure to file the FBAR form is a serious tax matter, and you should seek counsel to advise you of you options. Waters Law, LLC has helped individuals through the OVDP process and assisted in the reduction of the FBAR penalties for effected taxpayers. Contact us today for a free consultation.