Treasury Form, Report of Foreign Bank and Financial Accounts (FBAR), Filing Delayed Until June 30, 2010; Some Benefit/Pension Trusts May Need to File

The U.S. Internal Revenue Service (IRS) has issued Notice 2009-62 which delays filing requirements for the Report of Foreign Bank and Financial Accounts (also known as FBAR) until June 30, 2010. The IRS is also requesting public comments on who should be exempted from filing this form. Comments are due October 6, 2009.

The Department of Treasury requires "U.S. persons" who have a financial interest in or signature authority (or other authority) over any financial account in a foreign country to file form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (also known as FBAR), if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. The IRS defines "U.S. person" as a citizen or resident of the United States, or a person in and doing business in the United States. The term "person" includes individuals and all forms of business entities, trusts, and estates. The deadline to file the report is June 30, 2009. On June 24, 2009, the IRS announced that taxpayers who recently discovered their obligation to file FBAR can file the form delinquently, without penalty, by September 23, 2009, if they follow certain procedures.

There has been confusion and uncertainty in the industry as to whether or not U.S. pension and employee benefit trusts with foreign holdings as investments must file FBAR.
Government Resources:
IRS Notice 2009-62, FBAR Filing Requirements - Extended Filing Date for U.S. Persons Having Signature Authority Over, But No Financial Interest In, a Foreign Financial Account, and for U.S. Persons with Financial Interest In, or Signatory Authority Over, Foreign Commingled Funds: Request for Public Comments on FBAR Filing Requirements, August 7, 2009

Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR)

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

IRS Announcement Allowing Delinquent Filing of FBAR Until September 23, 2009

IRS News Release: IRS Clarifies Requirement for Filing FBAR Form Due This Month (re: Announcement 2009-51)

Additional Resources:

FBAR:  A FUrther Extension - Must Employee Benefit Plans or Their Managers File, Seyfarth Shaw, August 12, 2009

IRS Grants FBAR Filing Extension for Certain U.S. Persons, Morgan Lewis & Bockius, August 10, 2009

IRS Delays Offshore Investment Disclosure for Pension Funds, Pensions & Investments, August 7, 2009

Plans May Be Required to Report Offshore Investments by September 23, 2009, Groom Law Group

Extension of Deadline for Reporting Foreign Accounts for Certain Taxpayers to September 23, Proskauer Rose

June 30 Deadline for Reporting Foreign Accounts to U.S. Department of Treasury, Proskauer Rose

June 30 FBAR Reporting Deadline Nears; New Guidance Provides Temporary Relief, Miller Chevalier (pages 1-2)

Recently Announced FBAR Reporting Requirements for Hedge Funds and Similar Investments -- Due June 30, 2009, Kilpatrick Stockton