Extension for Voluntary Disclosures and Certain FBAR Filers
September 21, 2009
Michael Chojnacki, Partner - Tax Services
Today the IRS extended the deadline for taxpayers to voluntarily disclose unreported income in offshore accounts from September 23 to October 15, 2009, stressing in a News Release (IR-2009-84) that this is a one-time extension.
The announcement gives taxpayers three more weeks to participate in the voluntary disclosure program first unveiled by the IRS in March. The program offers the possibility of reduced, simpler, and consistent penalties with a chance to escape criminal prosecution if taxpayers come forward on their own.
The IRS said it decided to extend the deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests. The new October 15 deadline will provide "relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it," the IRS said.
The September 23, 2009 deadline for certain FBAR filers (who have no unreported income) and certain offshore-related information filings is also extended to October 15, 2009 (www.irs.gov).
FBAR FilingsOn June 24, 2009, the IRS issued advice to U.S. persons who learned they have a 2008 FBAR obligation, and did not have sufficient time to gather the information necessary to properly file the FBAR by the June 30, 2009 due date. With respect to such persons, the IRS "extended" the FBAR filing deadline to September 23, 2009, provided that certain conditions were also met. This also applied to delinquent FBARs for pre-2008 years. People who satisfy the conditions now have until October 15, 2009 to submit FBARs, information returns, and related documents.
The New Release issued today does not impact the extension previously provided in Notice 2009-62. Notice 2009-62 announced the extension until June 30, 2010 for filing certain FBARs for 2008 and earlier calendar years applicable to:
- persons with signature authority over, but no financial interest in, a foreign financial account, and
- persons with a financial interest in, or signature authority over, a foreign commingled fund [emphasis added].
For more information, please contact a Frank, Rimerman + Co. LLP tax professional.
Any tax advice in this communication is not intended or written by Frank, Rimerman + Co. LLP to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein. With this communication, Frank, Rimerman + Co. LLP is not rendering any specific advice to the reader.
Download Extension for Voluntary Disclosures and Certain FBAR Filers  - September 21, 2009 Article
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