- UPDATE: IRS Modifies FBAR Reporting Requirements for Hedge Fund and Similar
- July 7, 2009 | Authors: Jeffrey T. Skinner; Sarah N. Lowe; John P. MacMaster; Matthew S. Chambers; R. Sterling Perkinson
- Law Firms: Kilpatrick Stockton LLP - Winston-Salem Office ; Kilpatrick Stockton LLP - Atlanta Office ; Kilpatrick Stockton LLP - Winston-Salem Office ; Kilpatrick Stockton LLP - Raleigh Office
On June 24, Kilpatrick Stockton released a legal alert concerning the reporting requirements of the Internal Revenue Service’s (IRS) Report of Foreign Bank and Financial Accounts (FBAR). On June 25, the IRS updated its administrative guidelines for certain taxpayers who fail to file FBAR reports for 2008 by the June 30, 2009 deadline. Under the updated guidelines, taxpayers who reported and paid tax on all their 2008 taxable income, but only recently learned of their FBAR filing obligation and have insufficient time to gather the necessary information to complete the FBAR, may file a delinquent FBAR report by September 23, 2009, together with a copy of their 2008 tax return and a statement explaining why the report is filed late.
As we reported in our June 24 legal alert, the IRS has adopted an expansive view of what may constitute a financial account subject to FBAR reporting obligations. U.S. persons should be aware that those duties extend not only to persons with beneficial interests in such accounts but also those who have signature authority over the accounts (e.g., individual officers with signature authority over any foreign financial accounts).
The Investment Management and Employee Benefits practice groups will monitor sources for FBAR developments and will inform you of updates accordingly.