March 21, 2023

Volume XIII, Number 80


March 20, 2023

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Filing Deadline Extended for Certain Foreign Bank and Financial Accounts Filers

Certain individuals who have only signature authority over foreign financial accounts now have until April 15, 2018 to file the Report of Foreign Bank and Financial Accounts.

On December 16, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released Notice 2016-1, which states that certain persons who are obligated to file FinCEN Form 114 – Report of Foreign Bank and Financial Accounts (FBAR) now have until April 15, 2018 to file the form.[1] This extended filing deadline applies to certain individuals who have signature authority over, but no financial interest in, one or more foreign financial accounts. The extension also applies to certain employees or officers of investment advisers registered with the US Securities and Exchange Commission (SEC) who have signature authority over, but no financial interest in, certain foreign financial accounts.

In Notice 2016-1, FinCEN references proposed rules issued on March 10, 2016 that would expand and clarify the exemptions for certain US persons with signature authority over foreign financial accounts, which were addressed in prior notices that extended deadlines for such individuals. This extension covers not only the reporting of signature authority held by such persons for 2016 but also the reporting deadlines previously extended under FinCEN Notices 2011-1, 2011-2, 2012-1, 2012-2, 2013-1, 2014-1, and 2015-1. The filing due date of April 18, 2017[2] (with respect to the 2016 calendar year) remains applicable to all others who are required to file an FBAR.

Generally, FinCEN Notice 2016-1 further extends the FBAR filing deadline for the following employees and officers of certain “excepted entities” (as defined in the final regulations released by FinCEN on February 24, 2011[3]):

  • An employee or officer of an excepted entity who has signature or other authority over, but no financial interest in, a foreign financial account of a controlled person of the entity.

  • An employee or officer of a controlled person of an excepted entity who has signature or other authority over, but no financial interest in, a foreign financial account of the entity or another controlled person of the entity. For this purpose, a “controlled person” is a US or foreign entity that is more than 50% owned (directly or indirectly) by an excepted entity.

Notice 2016-1 also generally extends the filing deadline for employees or officers of investment advisers registered with the SEC who have signature or other authority over, but no financial interest in, foreign financial accounts of persons that are not investment companies registered under the Investment Company Act of 1940 (1940 Act). The exemption set forth in the final regulations covers only employees of “authorized service providers” with respect to accounts of mutual funds that are registered under the 1940 Act.[4]

As noted, the above-described employees or officers now have until April 15, 2018 to file FBARs. When adopted in final form, proposed regulations issued in March will provide significant relief from the FBAR filing requirement to a broader group of individuals than those eligible for the extension under Notice 2016-1.

[1]. The prior deadline for such persons was April 18, 2017, per Notice 2015-1, which is consistent with the federal income tax due date. Pursuant to P.L. 114-41, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 of the same calendar year, and specific requests for this extension are not required. 

[2] Per the press release accompanying Notice 2016-1, the due date has been set to April 18, 2017 to coincide with the due date for federal income tax returns.

[3]. For further details, see “FinCEN Issues Extension for Certain FBAR Filers.”

[4]. For further details, see “Two More Extensions: IRS and FinCEN Issue Extensions for Certain FBAR Filers in IRS Notice 2011-54 and FinCEN Notice 2011-2.”

Copyright © 2023 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume VI, Number 355

About this Author

Gabriel Quihuis, Morgan Lewis, tax attorney
Of Counsel

Gabriel A. Quihuis advises fund sponsors on tax matters relating to fund structuring and operations, and provides tax advice to institutional investors in connection with domestic and offshore private fund investments. Gabriel regularly advises clients on issues relating to the Foreign Account Tax Compliance Act (FATCA). Gabriel also assists clients on various corporate tax issues related to domestic and cross-border mergers, acquisitions, financings, and restructurings.

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Richard Zarin, Morgan Lewis, Financial services lawyer

Working with businesses in industries such as media, financial services, aviation, shipping, and education, Richard S. Zarin counsels clients on tax matters involving international and US transactions. He also advises clients on ongoing tax planning. Richard’s experience includes mergers, acquisitions, the formation and operation of joint ventures, debt and equity restructurings, and securities offerings. In addition, he represents organizers of and investors in onshore and offshore investment funds and other alternative investment vehicles.

William Zimmerman, Morgan Lewis, Tax lawyer

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