• Update--Investments in Private Investment Funds: Subject to FBAR Reporting by June 30, 2009 or Not?
  • August 20, 2009 | Author: Rory M. Cohen
  • Law Firms: Venable LLP - New York Office; Venable LLP - Baltimore Office; Venable LLP - Washington Office
  • As discussed in our June 2009 Tax Bulletin on this issue, the IRS took the position in mid-June, 2009 that an investment in an offshore hedge fund or private equity fund (each an "OPF") constitutes an interest in an offshore financial account and thus is subject to reporting on the U.S. Treasury Form 90-22.1 ("FBAR"). This recent position was viewed by some as being inconsistent with previous guidance by the IRS on this issue. As a result, the IRS received a large number of letters from attorneys, accountants and industry groups protesting the June 2009 position.