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TAX UPDATES > E-Alert: FBAR Guidance Issued
Announcement 2010-16 suspends FBARs filings for 2009 and earlier calendar years for foreign persons doing business in the United States:
"The requirement to file an FBAR due on June 30, 2010, is suspended for persons who are not United States citizens, United States residents, or domestic entities. Additionally, all persons may rely on the definition of "United States person" found in the July 2000 version of the FBAR instructions to determine if they have an FBAR filing obligation for the 2009 and earlier calendar years. The definition of "United States person" from the July 2000 version of the FBAR is:
United States Person The term "United States person" means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust."
Notice 2010-23 provides guidance on signatory filings and commingled accounts originally addressed in Notice 2009-62:
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Signature Authority – Notice 2009-62 is Extended for One Year
"Persons with signature authority over, but no financial interest in, a foreign financial account for which an FBAR would otherwise have been due on June 30, 2010, will now have until June 30, 2011, to report those foreign financial accounts. The deadline of June 30, 2011, applies to FBARs reporting foreign financial accounts over which the person has signature authority, but no financial interest."
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Certain Foreign Commingled Funds are Required to be Disclosed
"Persons with a financial interest in, or signature authority over, a foreign commingled fund that is a mutual fund are required to file an FBAR unless another filing exception, as provided in the FBAR instructions or other relevant guidance, applies (emphasis added). The IRS will not interpret the term "commingled fund" as applying to funds other than mutual funds with respect to FBARs for calendar year 2009 and prior years." This means that minority interests in hedge funds, certain other partnership interests and interests in PFICs are not required to be disclosed on 2009
FBARs.
Notice 2010-23 also provides guidance for FBAR-related questions on federal tax forms
Taxpayers with no other reportable foreign financial accounts for the year in question, and who qualifies for FBAR filing relief provided in Notice 2010-23, should check the "no" box in response to FBAR-related questions found on federal tax forms for 2009 and earlier years that ask about the existence of a financial interest in, or signature authority over, a foreign financial account.
For more information
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