The Financial Crimes Enforcement Network (FinCEN) has issued notices extending the filing date of Reports of Foreign Bank and Financial Account (FBARs) for victims of recent natural disasters, including Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Tropical Storm Francine.
Victims of these recent natural disasters are granted an FBAR filing extension for the 2023 calendar year. FinCEN is offering this expanded relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance and by the IRS as eligible for tax filing relief as a result of the specific natural disasters.
Details
The specific relief varies by storm. Here is the relief outlined so far:
Hurricane Helene: Victims of Hurricane Helene have until May 1, 2025, to file FBARs for the 2023 calendar year. FBAR filings for calendar year 2023 would otherwise be due on or before October 15, 2024.
Hurricane Debby: Victims of Hurricane Debby have until February 3, 2025, to file FBARs for the 2023 calendar year. Otherwise, FBAR filings for calendar year 2023 would be due on or before October 15, 2024.
Hurricane Beryl: Victims of Hurricane Beryl have until February 3, 2025, to file FBARs for the 2023 calendar year. FBAR filings for calendar year 2023 would otherwise be due on or before October 15, 2024.
Tropical Storm Francine: Victims of Tropical Storm Francine have until February 3, 2025, to file FBARs for the 2023 calendar year. FBAR filings for calendar year 2023 would otherwise be due on or before October 15, 2024.
Your rule of thumb: FinCEN deadlines for FBAR filings will be the same as the IRS deadlines.
FinCEN will work with any FBAR filer who lives outside the disaster areas but who must consult records located in the affected areas to meet the deadline. FBAR filers who live outside the affected areas and who are seeking assistance in meeting their filing obligations (including workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization) should contact the FinCEN Regulatory Support Section at 800-767-2825 or electronically at frc@fincen.gov.
Foreign Financial Accounts
As part of the Bank Secrecy Act (31 USC §5314), every U.S. person with a financial interest in, or signature or other authority over, one or more foreign financial accounts with an aggregate value of more than $10,000 must annually report the account to the Treasury Department. You do this by filing Form 114, Report of Foreign Bank and Financial Accounts—more commonly known as an FBAR. The form is filed online.
The FBAR is an annual report generally due on April 15 (unless it falls on a weekend or holiday). It’s the same deadline as Tax Day. However, you do not file an FBAR with the IRS—you file electronically with the Financial Crimes Enforcement Network (FinCEN). If you can’t file by the deadline, you can get an automatic extension to October 15.
Failure to report can result in a penalty, depending on whether the failure was willful or non-willful. The penalties can be draconian, but typically, the penalty for a non-willful violation is $10,000. However, thanks to a recent Supreme Court case, the penalty for a non-willful violation is per return and not per account.
Corporate Transparency Act (CTA)
So far, extensions have not been granted by FinCEN for purposes of the Corporate Transparency Act—or CTA—which requires reporting companies to file reports with FinCEN, the Financial Crimes Enforcement Network.
Last week, the American Institute of CPAs (AICPA) has submitted a letter to FinCEN urging them to implement a policy to offer automatic filing extensions for FBAR and Beneficial Ownership Information (BOI) reports—that’s CTA reporting—to victims of major disasters.
Without any additional extensions, a reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial report. This is true even if the company was created years before 2024.
A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial report—the clock starts to run when the company receives actual notice that its creation or registration is effective or after a secretary of state or similar office provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from the date of actual or public notice that the company’s creation or registration is effective to file their initial reports with FinCEN.
Other Relief
The IRS has already extended tax filing deadlines for individuals and businesses affected by the storms, including Hurricane Helene. That relief applies to the entire states of Alabama, Georgia, North Carolina, and South Carolina andparts of Florida, Tennessee, and Virginia.
These taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. That date is particularly noteworthy as it’s after the traditional tax filing deadline of April 15, 2025.
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