Nov.
1 deadline approaching for individuals to file FBAR reporting signature
authority
The Nov. 1, 2011 deadline for persons who have
signature authority over, but no financial interest in, foreign financial
accounts to file Form TD F 90-22.1, Report of Foreign Bank and Financial
Accounts (FBAR) is quickly approaching. This deadline was extended by IRS in Notice 2011-54, 2011-29
IRB 53 , in order to give
those individuals extra time to gather the necessary information to file
complete and accurate FBARs for 2009 and earlier calendar years.
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 30th of the
succeeding year.
In Notice 2009-62, 2009-35
IRB 260 , IRS extended the
deadline to June 30, 2010, to file a FBAR for years 2008 and earlier, for (i)
persons with no financial interest in a foreign financial account but with
signature or other authority over that account; and (ii) persons with a
financial interest in or signature authority over a foreign financial account
in which the assets are held in a commingled fund.
In Notice 2010-23, 2010-11
IRB 441 , which modified and
supplemented Notice 2009-62 , IRS deferred the deadline for persons with signature authority
over, but no financial interest in, a foreign financial account for which a
FBAR would otherwise have been due on June 30, 2010, until June 30, 2011. This
deadline applied to FBARs reporting foreign financial accounts for the 2010 and
prior calendar years.) Both of these extensions were provided to give Treasury
more the time to develop comprehensive FBAR guidance.
On Feb. 24, 2011, the Treasury Department's
Financial Crimes Enforcement Network (FinCEN) issued a final rule to amend the
Bank Secrecy Act (BSA) regs regarding FBAR reporting requirements. The rule was
made effective as of Mar. 28, 2011 and applies to 2010 reports required to be
filed by June 30, 2011, and those for subsequent years. It largely adopted the
proposed regs issued on Feb. 26, 2010, which provided additional guidance and
clarification regarding who must file FBARs.
Deadline further deferred. In response to comments that individuals with
signature authority over, but no financial interest in, foreign financial
accounts were having difficulty gathering the necessary information to file
complete and accurate FBARs for 2009 and earlier calendar years by the June 30,
2011 deadline, IRS pushed the deadline back to Nov. 1, 2011. (See Notice 2011-54, 2011-29
IRB 53 , However, the June
30, 2011, deadline for reporting either signature authority over, or financial
interest in, foreign financial accounts for the 2010 year remained unchanged.
IRS also stressed that Notice 2011-54 , had no effect on the requirements to provide information or
file FBARs in connection with IRS's 2009 or 2011 Offshore Voluntary Disclosure
Programs.
Extended deadline quickly approaching. Individuals with signature authority over
foreign financial accounts are reminded of the looming Nov. 1, 2011 deadline to
file FBARs for 2009 and earlier calendar years.
Notice
2011-54, 2011-29 IRB 53, 06/16/2011, IRC Sec(s). 6011
Reporting interests in foreign
accounts—extended FBAR filing date.
Headnote:
IRS has
provided additional administrative relief to taxpayers who are otherwise
required to file FBARs by 6/30/2011. Person with signature authority over, but
no financial interest in, foreign financial acct. for which FBAR would have
been due by 6/30/2011 will now have until 11/1/2011 to file for 2009 and prior
calendar years. IRS and FinCEN had been informed that individuals affected were
having difficulty compiling information necessary to timely file on 6/30/2011.
This relief doesn't affect or limit relief provided in guidance recently issued
by FinCEN. Notice 2010-23, 2010-11
IRB 441 is modified and supplemented.
Full Text:
This
Notice provides additional administrative relief to persons whose requirement
to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts
(FBAR), to report signature authority over foreign financial accounts held
during calendar year 2009 or earlier calendar years was properly deferred under Notice 2009-62, 2009-35 I.R.B. 260, or Notice 2010-23, 2010-11 I.R.B. 441.
On
August 31, 2009, the Department of the Treasury and the Internal Revenue
Service published Notice 2009-62, which, in part, extended
the filing deadline for persons with no financial interest in a foreign
financial account but with signature or other authority over that account
(hereinafter referred to as “ signature authority” ) for the 2008 or earlier
calendar years. In Notice 2010-23, the Department of the
Treasury and the IRS further extended relief to persons whose filing deadline
was properly deferred by Notice 2009-62 and provided a new filing
deadline to June 30, 2011, to report signature authority over, but no financial
interest in, foreign financial accounts for calendar year 2009 or earlier
calendar years. The extensions were provided to allow the Treasury Department
time to develop comprehensive FBAR guidance.
On
February 24, 2011, the Financial Crimes Enforcement Network (FinCEN) published
final regulations (76 FR 10234) amending the Bank Secrecy Act implementing
regulations regarding FBARs, found at 31 CFR 1010.350 (formerly 31 CFR 103.24).
The regulations became effective on March 28, 2011, and apply to FBARs required
to be filed by June 30, 2011, with respect to foreign financial accounts
maintained in calendar year 2010, as well as to FBARs for subsequent calendar
years. The final regulations also provide that individuals who properly
deferred their FBAR filing obligations pursuant to Notice 2010-23 may apply the provisions
of the final regulations in determining their FBAR filing requirements for
reports due June 30, 2011, with respect to foreign financial accounts
maintained in calendar years beginning before 2010. In March 2011, the IRS
released a revised FBAR form with accompanying instructions that reflect the
amendments made by the final FBAR regulations.
The IRS
and FinCEN recently have been informed that individuals with signature
authority over, but no financial interest in, foreign financial accounts are
having difficulty compiling the information needed to file complete and
accurate FBARs with respect to the 2009 or earlier calendar years by the June
30, 2011 deadline, as previously extended by Notice 2009-62 or Notice 2010-23. Accordingly, the IRS and
FinCEN provide the following additional administrative relief:
Persons
having signature authority over, but no financial interest in, a foreign
financial account in 2009 or earlier calendar years for which the reporting
deadline was extended by Notice 2009-62 or Notice 2010-23 will now have until
November 1, 2011, to file FBARs with respect to those accounts. The deadline
for reporting signature authority over, or a financial interest in, foreign
financial accounts for the 2010 calendar year remains June 30, 2011.
The
administrative relief provided in this Notice does not limit the relief
provided in FinCEN's Notice 2011-1, which was released on May 31, 2011, and revised
on June 6, 2011. A copy of revised FinCEN Notice 2011-1 may be found at www.fincen.gov.
Additionally, the administrative relief provided in this Notice does not affect
the requirements to provide information or file FBARs in connection with the
IRS's 2009 Offshore Voluntary Disclosure Program or the 2011 Offshore Voluntary
Disclosure Initiative. Nor does this Notice alter the deadlines for electing to
participate in, or fulfilling the submission requirements of, the Offshore
Voluntary Disclosure Program or the Offshore Voluntary Disclosure Initiative.
The principal author of this notice is Emily M. Lesniak of the
Office of Associate Chief Counsel (Procedure and Administration). For further
information regarding this Notice, contact Emily M. Lesniak at (202) 622-4570
(not a toll-free call).
www.irstaxattorney.com 888-712-7690
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