Tax & Accounting Blog

Treasury Issues Final Rule on FBAR

Document and WorkFlow Management, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax October 3, 2011

On February 24, 2011, the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department, issued a final rule on Foreign Bank Account Reports (FBARs).

The rule addresses the scope of persons that are required to file FBARs.  The rule specifies the types of accounts that are reportable and provides relief for certain persons with signature or other authority over foreign financial accounts.  The rule adopts provisions intended to prevent persons subject to the rule from avoiding their reporting requirement.

The Treasury also released an updated version of Form TD F 90-22.1, the FBAR form, with revised instructions.

On May 31, 2011, the IRS and FinCEN announced that a small subset of individuals with only signature authority will receive a one-year extension beyond the June 30, 2011 filing deadline. See FinCEN Notice 2011-1.

On June 16, 2011, the IRS released Notice 2011-54.  Under the Notice, persons having a signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years will have until November 1, 2011 to file FBARs for 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.