Monday, June 13, 2011

IRS updated fbar regulations

U.S. Department of the Treasury (“Treasury”) issued On March 28, 2011, the Final Regulations, relating to the filing of Reports of Foreign Bank and Financial Accounts (“FBAR”) became effective. Final Regulations do not require ownership interests in, or signing or other authority over, private investment funds, such as hedge funds and private equity funds, to be reported on FBARs, although Treasury will continue to study the issue.
The Final Regulations apply to FBARs required to be filed by June 30, 2011 with respect to foreign financial accounts maintained in the calendar year 2010, and for all subsequent years. United States persons, who deferred FBAR filings for prior reporting years in accordance with guidance issued by Treasury, may apply the provisions of the Final Regulations in determining their FBAR filing requirements for any deferred reports due June 30, 2011.
A revised FBAR form (Form TD-F-90-22.1) and General Instructions, which should be used for the June 30, 2011 filing deadline, were also recently released.
Background Information Relating to FBARs
Any United States person, who has a financial interest in, or signature or other authority over, any foreign financial accounts, including bank, securities, or other types of financial accounts in a foreign country, must report that relationship each calendar year by filing an FBAR with Treasury on or before June 30 of the succeeding year, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year.

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