# FBAR: updated form announced on FinCEN website



## Jugdish (Aug 19, 2013)

On 29 July 2013, the FinCEN website announced it was updating the e-filing form for FBAR, adding support for third party submission of the form, as well a way to include a reason for a late filed form.

Previously there was no way to attach a statement of reasonable cause for an electronically-filed late FBAR, which meant penalties were being issued for forms automatically flagged by the system, and tax advisors were discouraging their clients from e-filing (even though e-filing is mandatory as of 1 July 2013, and supposedly paper-filed FBARs result in a $500 fine).

The updated form won't be available until end of September 2013, but you can preview it on FinCEN's test site. I took a look at it, and on the first page there is a drop-down box to select a reason for a late-filed form. The reasons include things like "Did not know I had to file" and "Forgot to file." Only if you choose "Other" are you allowed to include, in your own words, an explanation.

I'm curious to hear others' views on this new addition to the form - do you think a simple selection of "Did not know I had to file" will cause the system to issue an automatic penalty or not? How risky is it to choose one of these options with no way of including a statement further explaining your situation?


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## Bevdeforges (Nov 16, 2007)

I have yet to hear about any "automatic penalties" being spit out of the system. And I have serious doubts about their requirement that "all" FBARs must be filed electronically. 

As far as a late filed FBAR is concerned, why not just wait until next year when you can file on time? 

I help a friend with her taxes for the US. (She became a US citizen when living over there with her husband, but has returned to Europe to live.) She has no access to the Internet, no computer, and no clue how to file her FBAR electronically. In past years, I have filled out the form for her, then given it to her to mail in. If they really intend to fine her $500 for filing a paper form, then I'm going to advise her to just forget about it altogether. Safer not to file anything than to risk a big fine like that.
Cheers,
Bev


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## Jugdish (Aug 19, 2013)

Bevdeforges said:


> As far as a late filed FBAR is concerned, why not just wait until next year when you can file on time?


I was under the assumption that it's best to late file previous years rather than leave them unfiled. Is that not the case?


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## Bevdeforges (Nov 16, 2007)

Jugdish said:


> I was under the assumption that it's best to late file previous years rather than leave them unfiled. Is that not the case?


It depends. The full weight and force of the FATCA/FBAR legislation comes into effect next year (2014) if I understand correctly. And it depends on what accounts you do or don't have overseas and to what extent the banks in those countries are going to be reporting on accounts held by US persons to the IRS. 
Cheers,
Bev


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