IRS extends due date for filing some FBARs
| IRS extends due date for filing some FBARs |
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Notice 2009-62, 2009-35 IRB A new notice extends the due date for filing Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (FBAR)) in certain cases. The extension applies to (i) persons with signature authority over, but no financial interest in, a foreign financial account, and (ii) persons with a financial interest in, or signature authority over, a foreign commingled fund. Those persons have until June 30, 2010, to file a FBAR for the 2008 and earlier calendar years with respect to these foreign financial accounts. Background. Each U.S. 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, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year by filing TD F 90-22.1, with the Department of the Treasury on or before June 30 of the succeeding year. Form TD F 90.22-1 was revised in October 2008 with various changes. On June 5, 2009, IRS issued Ann. 2009-51, 2009-25 IRB , which stated that it was temporarily suspending the filing requirement of the FBAR for those persons who are not U.S. citizens, residents, or domestic entities. On May 6, 2009 and June 24, 2009, IRS posted questions and answers on its website providing relief to certain persons who only recently learned of their obligation to file a FBAR by setting forth conditions and procedures for filing Form TD F 90-22.1 by Sept. 23, 2009. Filing relief. Notice 2009-62 provides additional administrative relief for (i) persons with no financial interest in a foreign financial account but with signature or other authority over the foreign financial account (hereinafter referred to as “signature authority”), and (ii) persons with a financial interest in, or signature authority over, a foreign financial account in which the assets are held in a foreign commingled fund. IRS says it intends to issue regs clarifying the FBAR filing requirements pertaining to those persons with respect to these foreign financial accounts, and, in Notice 2009-62, solicits comments related to these FBAR filing requirements. Notice 2009-62 extends the FBAR filing requirements for persons with signature authority over, but no financial interest in, a foreign financial account, and persons with a financial interest in, or signature authority over, a foreign commingled fund. Those persons have until June 30, 2010, to file a FBAR for the 2008 and earlier calendar years with respect to these foreign financial accounts. Thus, eligible persons that avail themselves of the relief may need to file FBARs for the 2008, 2009 and earlier calendar years on or before June 30, 2010, to the extent provided in future guidance. Request for comments. IRS is interested in receiving comments on these and other issues affecting a person's FBAR filing obligation: ... when a person with signature authority over, but no financial interest in, a foreign financial account should be relieved of filing a FBAR for the account; ... under what circumstances the exception from FBAR filing currently available for officers and employees of banks and certain publicly-traded domestic companies might be expanded to apply to all officers and employees with only signature authority over, and no financial interest in, an employer's foreign financial account; ... how the bank and publicly-traded company exception might apply to officers and employees with only signature authority over accounts owned by clients of their employer; ... when an interest in a foreign entity (e.g., a corporation, partnership, trust, or estate) should be subject to FBAR reporting; and ... whether a U.S. person should be relieved from a FBAR filing requirement with respect to a foreign commingled fund in other circumstances, such as when filing would be duplicative of other reporting. |
