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Today, the IRS released guidance that provides significant relief to persons considering the extent to which they need to submit a Report of Foreign Bank and Financial Accounts (an "FBAR"). The FBAR is used to report a financial interest in, or signature or other authority over, one or more foreign financial accounts.
- Notice 2010-23 provides that interests in private investment vehicles like private equity funds and hedge funds will not be considered foreign financial accounts, and thus need not be reported on an FBAR, for 2009 or prior years.
- The Notice also permits persons with signature authority over, but no financial interest in, foreign financial accounts to defer reporting of those accounts for 2009 and prior years until June 30, 2011, with the deferred filing to be subject to the FBAR rules in effect at that time.
- Announcement 2010-16 provides that persons other than U.S. citizens and residents, domestic corporations, partnerships, estates and trusts need not file FBARs for 2009 or prior years.
The Notice is available on the IRS’s website, here. The Announcement is here.
Yesterday, the Treasury Department released proposed regulations that would modify the FBAR regime in certain ways, as well as a related news release. For more information about the proposed regulations, see Proposed FBAR Regulations Address Some Concerns but Leave Many Questions Unanswered.
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