As we previously reported, federal law requires that any U.S. person or entity with a financial interest in, or signature or comparable authority over, any foreign financial account file an annual Report of Foreign Bank and Financial Accounts, Form TD-F 90-22.1 ("FBAR") if the aggregate value of such accounts exceeds $10,000 at any time during the calendar year.
On June 16, 2011, the Internal Revenue Service issued Notice 2011-54 providing that persons having signature authority over, but no financial interest in, a foreign financial account for 2009 or earlier calendar years will now have until November 1, 2011 to file FBARs with respect to those accounts. However, 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 filing deadlines for 2009 and earlier calendar years had previously been extended by Notices 2009-62 and 2010-23.
Additionally, on June 17, 2011, the Financial Crimes Enforcement Network (FinCEN) issued Notice 2011-2 providing that certain employees and officers of investment advisors having signature authority over, but no financial interest in, a foreign financial account for 2010 and earlier calendar years will now have until June 30, 2012 to file FBARs with respect to those accounts. The extension applies to an employee or officer of an investment advisor registered with the Securities and Exchange Commission (SEC) who has signature or other authority over, but no financial interest in, a foreign financial account of persons who are not investment companies registered under the Investment Company Act of 1940. Final regulations released by FinCEN on February 24, 2011 provide an exception to filing for individuals working for advisors registered with the SEC who have signature or other authority over, but no financial interest in, foreign financial accounts owned or maintained by an investment company that is registered with the SEC.
It should be noted that FBARs must be received by the Department of the Treasury on or before the filing deadline, not simply mailed by the filing deadline. Except as discussed above, extensions are not available for filing FBARs. The IRS has not indicated that any further FBAR filing extensions will be available, so filers are advised to treat these deadlines as firm.
We will continue to monitor developments concerning the FBAR reporting rules. Please contact any of the Lowenstein Sandler attorneys listed for further information.
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