FBAR Form Due 6/30/2010; Additional Clarifications

Form TD F 90-22.1 (the so-called “FBAR Form”) is due June 30, 2010. This Form is required to be filed by U.S. persons and entities that have an interest in, or signature authority over, a financial account in a foreign country. The period covered by the FBAR Form that is due June 30, 2010 is calendar-year 2009. This reporting period is required regardless of the filer’s actual tax year (which may be other than a calendar-year).

Last June, we had provided information about the expanded uses of the FBAR Form and the associated extensions and additional exemptions from filing. There have been more clarifications by the Department of Treasury in the last few months.

Announcement 2010-16 suspended the FBAR filing requirement for 2009 and prior years for persons that are not U.S. citizens, residents, or domestic entities (e.g., corporations, partnerships, estates and trusts).

Announcement 2010-23 provided some relief from the FBAR filing requirements for certain groups, as follows:

Persons with signature authority over, but no financial interest in, a foreign financial account during 2010 and prior years are granted an extension for filing the FBAR Form until June 30, 2011. The delayed filing will be subject to any law changes between now and the extended deadline, therefore providing time for Treasury to finalize proposed regulations, including any exceptions contained in those regulations.

The term “commingled fund” will apply only to foreign mutual funds for calendar- year 2009 and prior years. Thus, those persons with an interest in a mutual fund that is domiciled outside of the U.S. should file the FBAR Form for 2009 and all prior calendar years by June 30, 2010. Interests in a foreign hedge fund or private equity fund are not included in the definition of “commingled fund” for 2009 and prior years. Thus, FBAR filings are not required for these types of foreign accounts.

Download Form TD F 90-22.1 [556 KB PDF] from the IRS’ Website.

This FBAR filing area continues to evolve and continues to be challenging. We will keep you informed as new developments arise. Please contact Chris Anderson at 216-344-5268 or canderson@maloneynovotny.com with questions.