The Treasury Department's Financial Crimes Enforcement Network (FinCEN) announced an automatic six-month extension for taxpayers required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Taxpayers now have until October 16 to submit their FBARs for 2016 without being subject to penalties.
FBAR Overview. Subject to certain exceptions, any United States person with an interest in, or signature or other authority over, one or more foreign financial accounts whose aggregate value exceeds $10,000 at any time during a calendar year is required to file an FBAR in the following year.
Automatic Extension of Filing Deadline to October 15. Until last year, FBARs were generally due on June 30, with no automatic extensions available. In 2015, Congress moved the deadline to April 15 beginning with FBARs for 2016 (due in 2017). Congress also provided for extensions of up to six months. To reduce the administrative burden and facilitate compliance, FinCEN is granting all filers an automatic extension to October 15 every year, without the need for specific requests, until further notice. Thus, FBARs for 2016 may be submitted as late as Monday, October 16.
Automatic Extension Only for FBARs. This automatic extension is limited to FBARs. The deadline for most IRS returns for foreign assets will not be extended unless the taxpayer files an extension request with respect to the underlying tax return. This includes IRS Form 8938 (Statement of Specified Foreign Financial Assets), IRS Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations), IRS Form 8865 (Return of U.S. Persons With Respect to Certain Foreign Partnerships) and IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), among others. IRS Form 3520 (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts), although filed separately from the filer's tax return, is due at the same time as the filer's tax return, including extensions.
Day Pitney attorneys Andrew M. Nerney and Anna Rothfus Merin co-authored the article, "IRS "Strikes Gold" by Targeting IRA Owners Investing in Coins," published by WealthMangement.com
On October 28, Counsel Heidi Seely spoke at a Financial Planning Association meeting, "Boston Practice Group: Estate Planning & Practical Suggestions for Advisors & their Clients."
Individual Clients Attorneys Carl A. Merino, Dina Kapur Sanna and Sarah B. Jacobson co-authored an article for Trusts & Estates Magazine titled, "Pre-Residency Planning for Your Client's Trust."
Warren Whitaker, Dina Kapur Sanna and Carl Merino co-authored a 2021 update to the white paper, entitled "U.S. Tax Planning for Non-U.S. Persons, Assets and Trusts - An Introductory Outline."
Of Counsel Michael Pfeifer served on the panel, "Integrated Asset Protection," a webinar hosted by Respada on July 29.
Day Pitney's 11 newly promoted partners, including Justin Hannan and Jordana Schreiber in Boston, were featured in the Boston Bar Association's Law Firm Newsletter.
Boston-based Tax Partner Justin Hannan's promotion to partner was featured in Tax Notes' Moves and Appointments column.
Day Pitney LLP promoted 11 attorneys to partner in the firm's three core departments: Corporate and Business Law, Litigation, and Individual Clients.
In November 2021, Day Pitney represented Crescendo Capital SA, a Geneva-based asset manager, and its U.S. affiliate, Crescendo Asset Management, LLC, in connection with the formation of a master-feeder fund structure consisting of two Cayman Islands domiciled feeder funds investing into a Delaware series limited liability company (the "Intermediary Vehicle").
In November 2021, Day Pitney represented Nickel Digital Asset Management Ltd, a London-based cryptocurrency asset manager, in connection with the formation of a multi-series Delaware limited partnership formed to invest in decentralized digital currency and tokens.