June is traditionally viewed as a mid-point between the original and extended due dates for filing business, fiduciary, and individual tax returns. However, there are two significant dates that warrant attention.
Estimated Tax Payments
June 15 is the date for making 2nd quarter estimated tax payments for corporations with calendar year ends, fiduciaries,and individuals. Because the 15th falls on a Sunday in 2014, the payment is due on Monday June 16.
Businesses and other entities required to make payments electronically are required to schedule their payments for direct debit ahead of time. Individuals and others who send their payments via US Mail must ensure that the payments are postmarked no later than Monday in order for them to be considered timely. This deadline applies for most states as well,although some have later reflective of their tax filing statutes.
As a reminder to existing AAF clients whose returns have been filed, estimated tax vouchers and/or payment instructions were provided to you with your completed returns. If you need duplicate copies or have any related questions, please reach out to the team member that you work with for additional information.
Foreign Bank Account Reporting (FBAR)
Businesses and individuals who directly or indirectly own non-US bank or securities accounts must file FinCEN Form 114 if the aggregate value of these accounts exceeds $10,000. Form 114 is also required to be filed by individuals having signature authority over such accounts. Form 114 must be filed by Monday June 30. There is no extension period allowed and, new for this year, the form must be submitted electronically.
Most of the articles that appear in financial publications and newspaper headlines address accounts held by individuals. However, US businesses that own foreign subsidiaries to conduct operations outside the US are also required to report their ownership of the subsidiaries’ bank accounts. If, in this example, a US person owns more than 50% of the US business, they are treated as being “indirect” owners of the account and would also need to file Form 114.
Individuals who have signature authority over foreign accounts are also required to file Form 114, despite having no ownership or beneficial interest in such accounts. The most common example of such filers is that of a trustee who controls foreign accounts on behalf of a beneficiary.
It is important to note that the Treasury Department has deferred the filing requirement by certain financial professionals (CFO’s, accounting officers, financial brokers, etc.) with signature authority over their employer’s directly or indirectly owned foreign accounts until June 30, 2015. Please contact us if you are uncertain of whether this deferral applies to you and your individualized circumstances.