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Foreign Investment Reporting Extended for Certain Taxpayers

On August 7, 2009, the Internal Revenue Service issued Notice 2009-62 (the Notice), which provides additional relief for persons (individuals, entities, tax-exempt organizations, IRAs and other taxpayers) regarding the filing of the Report of Foreign Bank and Financial Accounts (FBAR).

The Notice provides that persons who are in either of the following two situations now have until June 30, 2010, to file an FBAR for 2008 and earlier years with respect to their foreign financial accounts. (The previous extended due date was September 23, 2009.)

1. A person with no financial interest in a foreign financial account but with signature or other authority over the financial account
2. A person with a financial interest in or signature authority over a foreign financial account in which the assets are held in foreign commingled funds including hedge funds, foreign partnerships or foreign mutual funds.

The filing extension was granted as a result of confusion among taxpayers as to who is required to file the FBAR. The IRS is requesting comments from interested parties, which will aid in the development of regulations that clarify the reporting requirements. It’s possible that the filing requirements and due dates will change once the regulations are issued.

The penalties for not properly reporting a foreign account can be severe. We strongly encourage you to review your foreign investment activity for potential reporting requirements.

Please click here to read our June 2009 alert, “Time-Sensitive FBAR Requirements,” which contains important information on FBAR filing requirements.

To speak with someone regarding FBAR filing and/or the Notice, please contact Brian Carter at 312-980-2994 or bcarter@BlackmanKallick.com or contact your Blackman Kallick representative.
 

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.