Special October 7 FBAR Deadline for 2022 FBAR | International Tax Lawyer
In this calender year 2024, there is a special October 7 FBAR deadline that was created by FinCEN in response to the October 7 terrorist attack against Israel. Let’s discuss discuss this special October 7 FBAR deadline in more detail.
October 7 FBAR Deadline: Background Information
The terrorist attack on Israel on October 7, 2023 was horrible and its primary affect was on the people who lost their lives, lives of their family members and friends. The second impact of the terrorist attack and the follow-up Israeli military action was a significant disruption of the US-Israeli taxpayers’ ability to comply with their US tax obligations.
Recognizing this disruption, the IRS and (later) FinCEN announced an important tax relief for the affected persons from their US tax reporting obligations.
October 7 FBAR Deadline: IRS Notice 2023-71
The IRS reacted first with the IRS Notice 2023-71 that postponed various tax compliance and payment deadlines that occurred and will occur between October 7, 2023 and October 7, 2024 for the affected businesses and individuals. Thus, the new deadline for all of these tax compliance and payment obligations is October 7, 2024.
Here is an incomplete list of affected deadlines:
- 2022 extended tax return for individuals who had a valid extension to file their 2022 return due to run out on October 16, 2023. The tax relief, however, would not affect the tax payments related to these 2022 returns that were due on April 18, 2023. In other words, this is an extension to file, not to pay.
- Calendar-year corporations whose 2022 extensions run out on October 16, 2023. Similarly, these corporations have more time to file, but not to pay.
- 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. So, these individuals and businesses have both more time to file and more time to pay.
- Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17 and Sept. 16, 2024.
- Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30 and July 31, 2024.
- Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
- Retirement plan contributions and rollovers.
October 7 FBAR Deadline: Why the IRS Postponed Deadlines to October 7 2024
One might have a logical question: why did the IRS create such a strange deadline of October 7, 2024, instead of, for example, April 30, 2025? The answer lies in Internal Revenue Code (“IRC”) Section 7508A(a), which provides the IRS with authority to postpone the time for only up to one year for performing certain acts under the internal revenue laws for a taxpayer determined by the Secretary to be affected by a terroristic or military action as defined in section 692(c)(2). Section 692(c)(2) defines a terroristic action as “any terroristic activity which a preponderance of the evidence indicates was directed against the United States or any of its allies.” The State of Israel is of course an ally of the United States.
October 7 FBAR Deadline: FinCEN Relief for the Filing of 2022 FBAR
FinCEN soon followed the IRS lead and announced a similar relief to the filing of 2022 FBAR (which was due on October 16, 2023). The relief applies only to individuals and businesses affected by the terrorist action against the State of Israel on October 7, 2023. The new deadline mirrors the IRS deadline — October 7, 2024.
October 7 FBAR Deadline: Affected Taxpayers
In its announcement, FinCEN specifically referred to the IRS Announcement on October 13, 2023, for the definition of individuals and businesses eligible for the new 2022 FBAR deadline. The IRS identified four categories of US taxpayers eligible for the relief:
- Any individual whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank or Gaza (the covered area).
- Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is located in the covered area.
- Anyone killed, injured, or taken hostage due to the terrorist attacks.
- Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.
Contact Sherayzen Law Office for Professional Help With Your FBAR Obligations
If you need help concerning your 2022 FBAR filing obligations or compliance with any other (including delinquent) FBAR obligations, contact Sherayzen Law Office for professional help. We have helped hundreds of taxpayers around the world, including with foreign accounts in Israel, to bring their tax affairs in full compliance with their US tax laws. We can help you!
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