FinCEN Provides FBAR Filing Relief to Victims of Hurricane Helene
In response to the devastation caused by Hurricane Helene, the Financial Crimes Enforcement Network (FinCEN) has announced important relief measures for individuals affected by the disaster. Specifically, FinCEN has extended the deadline for filing the Foreign Bank Account Report (FBAR) for those residing in areas impacted by the hurricane, and filers now have until May 1, 2025, to submit their FBARs that otherwise would be due on or before Oct. 15, 2024.
Understanding FBAR Requirements
The FBAR, officially known as FinCEN Form 114, is a form required for U.S. citizens, residents and certain entities that hold foreign bank accounts. The requirement to file arises when the aggregate value of these accounts exceeds $10,000 at any point during the calendar year. Failure to comply with FBAR filing requirements can result in substantial penalties, including both civil and criminal consequences.
What are the Relief Measures from FinCEN?
Recognizing the disruptions caused by Hurricane Helene, which made landfall and wreaked havoc in various states, FinCEN’s announcement of the extension is a significant relief for many individuals grappling with the aftermath of the hurricane. The extension is available to those in any area that is both 1) qualifying for individual or public assistance by the Federal Emergency Management Agency (FEMA) and 2) qualifying for tax filing relief as determine by the Internal Revenue Service (IRS). If the IRS further designates more areas affected by Hurricane Helene as eligible for tax filing relief, those areas will automatically qualify for FBAR relief from FinCEN, with deadlines for FBAR filings matching the deadlines set by the IRS.
In addition to the deadline extension, FinCEN has emphasized its commitment to supporting any victims who reside outside the designated disaster areas but who are still seeking assistance to meet their filing deadlines.
How Should I Prepare for FBAR Filing?
In light of the extended deadline, it may be advantageous for filers to take proactive steps in preparing for their FBAR submissions. Here are some strategies to consider:
- Gather Documentation: Start collecting information regarding foreign bank accounts, including account numbers, bank names and the maximum balance for each account during the reporting year. This preparation can streamline the filing process later on.
- Consult with Professionals: Given the complexities of FBAR requirements, seeking assistance from qualified tax professionals like those in Windham Brannon’s International Practice, who are familiar with international tax law can be beneficial. They can provide guidance on compliance and help ensure that all necessary information is accurately reported.
- Stay Informed: Continue to monitor communications from FinCEN and other relevant agencies regarding any further updates or changes to filing requirements.
- Consider Financial Recovery Plans: As you focus on gathering documentation, also take time to assess your financial situation post-hurricane. This assessment can help you develop a recovery plan that includes budgeting, accessing relief funds and potentially restructuring finances to cope with any unexpected losses.
Windham Brannon Can Help
The extension of the FBAR filing deadline to May 1, 2025, for victims of Hurricane Helene is a much-needed relief for those navigating the difficult aftermath of this natural disaster. FinCEN’s recognition of the unique challenges faced by those affected underscores the importance of flexibility and support during times of crisis.
While this relief offers some respite, it is crucial for filers to remain proactive in their preparations. Windham Brannon’s International Practice professionals can support your strategies as you navigate the aftermath of a natural disaster, including FBAR filing requirements. For questions or more information, talk to your Windham Brannon advisor today, or reach out to Brandi Samuel.
