FOR IMMEDIATE RELEASE
AICPA Provides Recommendations on Filing Relief for Taxpayers Affected by Major Disasters
Washington, D.C. (February 7, 2024) The American Institute of CPAs (AICPA) submitted a letter to the Financial Crimes Enforcement Network (FinCEN) and Internal Revenue Service (IRS) providing recommendations for the Report of Foreign Bank and Financial Accounts (FBAR) to taxpayers impacted by major disasters. AICPA’s recommendations suggest FinCEN automatically match the filing deadline relief for FBARs that the IRS gives to taxpayers in disaster areas.
Taxpayers living in disaster areas may get a filing deadline postponement from the IRS, but FinCEN does not automatically grant the same deadline postponement for FBARs.
The AICPA recommends that FinCEN adopt a policy of automatically granting FBAR filing postponements to coincide with the relief provided by the IRS when the IRS grants postponements under section 7508A. The relief provided should match the relief provided by the IRS for other filings, both in terms of the extended due dates and the geographic scope.
“Taxpayers may have a disaster-related postponement from the IRS for their tax returns and think they are in the clear,” says Peter Mills, Senior Manager, AICPA Tax Policy & Advocacy. “They might not realize that there may not be the same postponement for their FBARs, because FBARs are not filed with the IRS. The penalties for not filing an FBAR can be severe. AICPA’s recommendations can help establish consistency and facilitate compliance with the FBAR filing deadline.”
About the American Institute of CPAs
The American Institute of CPAs® (AICPA®) is the world’s largest member association representing the CPA profession, with more than 415,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com