United States

Times up! March and April 2019 deadlines for information returns nears

Request extensions now to avoid penalties

TAX ALERT  | 

Upcoming March and April 2019 deadlines for filing several tax information returns, including Forms 1042, FATCA and FBAR reports, are rapidly approaching. Now is the time to confirm your filing obligations and to submit extension requests as needed.

The IRS’ new targeted compliance campaigns focusing on these returns means more risk for many filers. Refer to our prior alerts dated May 22, 2018, July 5, 2018 and November 20, 2018 for more details on these campaigns.  Additionally, certain key changes in filing requirements and key deadlines may impact your processes going forward. For example, the new deadline for filing Foreign Bank Account Reports (FBARs) was moved up from June 30 to April 15, to coincide with the due date for filing personal income tax returns, but an automatic extension was also granted without request through Oct. 15.

The chart below lists key upcoming filing deadlines, extension requirements, and other considerations that should be helpful for managing risk. Avoid penalties by filing extensions and accelerating data gathering processes now!  

Return Type

Due Date for 2018 Return or Extension Request

Considerations

Extension Form

Extended Due Date

Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

03/15/19

 

  • Due annually
  • Cannot be filed electronically
  • Refund claims are now subject to higher scrutiny

Form 7004, Application for Automatic Extension for Time to File Certain Business Income Tax, Information, and Other Returns

09/16/19

Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding

  • 03/15/19
  • Financial institutions (FIs) must file electronically
  • Non-FIs filing 250 or more forms must file electronically
  • Beware of common errors that trigger notices
  • Confirm successful transmission of e:files within 5 days of filing – the IRS does not send notice of bad files
  • Form 8809, Application for Extension of Time to File Information Returns, is required to extend the due date for filing return and
  • A separate letter must be sent to the IRS to request an extension of time to furnish recipient statements

04/14/19

Form 8966[1]

(FATCA Report)

03/31/19

(Cayman equivalent report due 5/31/19 and other countries vary)

  • Due dates for local country FATCA equivalent reports vary

Form 8809-I, Application for Extension of Time to File FATCA Form 8966*

06/13/19

FATCA Responsible Officer Certifications

  • 03/31/19 for sponsored entities and trustee documented trusts[2]
  • 7/1/2019 for Participating and Model 2 Reporting FFIs
  • Certifications are only required for Participating FFIs and Reporting FFIs resident in countries with Model 2 IGAs (such as Bermuda, Chile, Japan, Switzerland etc.)
  • Due July 1 of three year period following last certification period
  • See link for more details

Only required for ROs

No extension available

Not applicable

FinCEN 114 (FBAR)

  • 04/15/19, but automatically extended through 10/15/19[3]
  • 4/15/20, for certain financial professionals
  • Filing deadline was revised to coincide with personal income tax return filing due date
  • Automatic extension granted annually through Oct. 15
  • See note below for more details and notice granting automatic extension link

Automatic extension granted through 10/15 annually if you miss the 4/15 filing deadline

No request required

10/15/19


For additional information on the upcoming deadlines discussed above or for assistance in filing any of these returns, please refer to our FATCA page.

[1] Entities located in Model 2 countries (i.e. Bermuda, Chile, Japan, Taiwan, etc.) must report their US owners or substantial US owners of Passive non-financial entities and their coordinating financial information on a Form 8966, FATCA Report, to the IRS’ IDES (International Data Exchange Service) system by March 31, 2019.                                                                                                           

[2] The due date for submitting FATCA certifications for sponsored entities and trustee documented trusts was extended to March 31, 2019 from the original due date of July 1, 2018.  As such, companies registered as participating FFI or Reporting Model 2 FFIs (i.e. residents of Bermuda, Chile, Japan, Switzerland etc.) are required to submit the Certification of Preexisting Accounts (COPA) and periodic certification by the extended due date.  This certification does not apply to companies registered as Reporting Model 1 FFIs. 

[3] In 2017, the Financial Crime Enforcement Network (FinCen) announced that the due date for filing FBARs had been changed from June 30 to April 15 to coincide with the filing due date for personal tax returns.  However, an automatic extension until Oct. 15 is granted with no application required for those that miss the April 15 filing deadline.  Any US person with a financial interest in or signature authority over a foreign financial account must file an FBAR if the aggregate of all foreign financial accounts exceeds $10,000 at any time during the calendar year.  If a taxpayer fails to properly file an FBAR, he/she may be subject to criminal or civil penalties, which may account for up to 50 percent of the amount of the account at the time of the violation.

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