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Tax Compliance

 

Foreign Bank Accounts and Tax Filings
31 USC 5314(a)

 

US institutions and citizens that have an ownership interest in foreign bank accounts, or US citizens with signature authority over a foreign bank account have to file form TD F 90.22-1 (FBAR). The latter must report the account on an FBAR even if the foreign financial account is reported on an FBAR filed by the owner of the account (or other person that has a financial interest in the account).

 

Notice 2009-62

Regulations in this area are pending. The filing deadline for US institutions and citizens that have an ownership interest in foreign bank accounts, or US citizens with signature authority over a foreign bank account has been extended until June 30,2010 to file the form for 2008 and also for pre-2008 tax years.

 

The Report of Foreign Bank and Financial Accounts (FBAR) provides necessary information for certain governmental agencies. Information on the FBAR may be used in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.

The current instructions to the FBAR also provide that Form TD F 90-22.1 with respect to a given calendar year must be filed with the Department of the Treasury on or before June 30 of the succeeding year. Thus, except as provided in the prior relief granted by the IRS on its public website and in the notice referenced above,  FBARs with respect to the 2008 calendar year should have been filed on or before June 30, 2009.

 

The Department of the Treasury requests comments discussing in 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, including circumstances in which an individual has been advised that an FBAR has been filed with respect to a foreign financial account for which that person has signature authority. See Notice 2009-62 above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Resources

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR)****

 

Workbook on the Report of Foreign Bank and Financial Accounts

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new page 9/9/09 by mlo