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Foreign Bank and Account Reporting: new rules from Treasury
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June 30, 2009 is the last day for the US Treasury to receive the annual report for
2008 ownership or control of foreign assets totalling $10,000 or more (in the
aggregate at any time during the year). The October 2008 revisions to the Form's
instructions, and a June 12, 2009 conference with IRS sponsored by the AICPA,
the ABA, have got the industry worried. Institutions that don't think of themselves as
controlling foreign investments, but simply having an indirect interest, are
wondering if they have to report.
Form TD F 90-22.1(Rev. October, 2008) and instructions is to be filed:
by mailing to the Department of the Treasury, Post Office Box
32621, Detroit, MI 48232-0621, or by hand-carrying it to any
local office of the Internal Revenue Service for forwarding to
the Department of the Treasury, Detroit, MI
Note: Deposit in the mail is not filing. It must be received by June 30.
This is not clear from the instructions, but is explained at this link (although I
cannot find the reference the author cites). This makes sense, however,
because the FBAR is not a tax return and should not get the benefit of the
"deposit in the mailbox is delivery" rule applicable to returns.
Extensions are not available. If under the gun, just file without all information, and
then file an amended return.
However, if you have paid all your taxes, and just didn't know that an FBAR was
owed, you have until September 23 to file, provided you comply with the
procedure in Q&A 9 in this May 9 release from IRS.
The IRS website contains additional Q&As.
Some of the better guidance on the internet includes:
Tax Alert, June 18, 2009 (from Eisner LLP)
Investment Products Update, June 16, 2009 (from Sidley Austin)
ALERT: EXPANDED REPORTING REQUIREMENTS FOR FOREIGN BANK
ACCOUNT REPORTS (FBAR) June 24, 2009 Schneider Downs
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This article is provided as a courtesy and may not be relied upon as legal
advice, or to avoid taxes and penalties. Distribution to promote, market, or
recommend any arrangement or investment to avoid or evade taxes, including
penalties, is expressly forbidden. Any communication with the author as to its
contents, does not, of itself, create a lawyer-client relationship. Under the
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