Updated FBAR form on FinCEN website

On 29 July 2013, the FinCEN website announced it was updating the e-filing form for FBAR, adding support for third party submission of the form, as well a way to include a reason for a late filed form. See: http://www.fincen.gov/whatsnew/html/20130729.html

Previously there was no way to attach a statement of reasonable cause for an electronically-filed late FBAR, which meant penalties were being issued for forms automatically flagged by the system, and tax advisors were discouraging their clients from e-filing (even though e-filing is mandatory as of 1 July 2013, and supposedly paper-filed FBARs result in a $500 fine).

I took a look at the updated FBAR form, which is available on FinCEN's test site -- http://sdtmut.fincen.treas.gov/main.html

On the first page, there is a drop-down box to select a reason for a late-filed form. The reasons include things like "Did not know I had to file" and "Forgot to file." Only if you choose "Other" are you allowed to include, in your own words, an explanation.

I'm curious to hear other peoples' views on this new addition to the form - do you think a simple selection of "Did not know I had to file" will cause the system to issue an automatic penalty or not? How risky is it to choose one of these options without including a statement of your own to explain your situation?

This seems to simply be a test draft version and is consistent with the draft Schedule B for 2013. The new Form 114 may be running from as early as September or as late as January 1st; depending on which story I read.

This is the first I heard of the new form.  I hope they get everything set up properly by January 1, 2014, because right now, if you Google FBAR, you get the old form, IRS links to the old form etc.  I submitted my FBAR in print via mail this spring, if I recall they only offered efiling for individual forms, not married couples ...

Anyway, it looks like the new system requires one to establish an account first.  That seems to be a good direction to be going in, just sending off a print form in the mail to Detroit always made me wonder what happened to the forms when received there.