Wipfli Alerts & Updates: FBAR Reporting Extended
June 30, 2011
FBAR Reporting Extended for Certain Persons With Signature Authority Over Accounts Held During Years 2009 or Earlier
After finalizing the regulations governing the disclosure by U.S. persons of interest in, or signature authority over, foreign financial accounts on February 24, 2011, the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) have extended the filing deadline for certain filers.
Persons With Signature Authority Over, but No Financial Interest in, Foreign Financial Accounts
Pursuant to IRS Notice 2011-54, persons having signature authority over, but no financial interest in, a foreign financial account in calendar year 2009 or prior years (for which the reporting deadline was extended by Notices 2009-62 and 2010-23) have until November 1, 2011, to file TD F 90-22.1, “Report of Foreign Bank And Financial Accounts” (FBAR), unless extended by FinCEN Notices 2011-1 or 2011-2.
The relief provided by Notice 2011-54 does not extend to financial accounts for calendar year 2010. Thus, FBARs for calendar year 2010 not covered by other narrow notices noted below are still due to the Treasury by June 30, 2011. In addition, this relief does not extend to the requirements and deadlines provided in connection with the 2009 Offshore Voluntary Disclosure Program or the 2011 Offshore Voluntary Disclosure Initiative.
Officers and Employees of Regulated Entities Who Have Signature Authority Over Foreign Financial Accounts
With FinCEN Notice 2011-1, FinCEN has granted a limited, one-year extension to the FBAR filing deadline to the following narrowly targeted individuals:
- An employee or officer of a regulated entity who has signature or other authority over and no financial interest in a foreign financial account of a controlled person of the entity; or
- An employee or officer of a controlled person of a regulated entity who has signature or other authority over and no financial interest in a foreign financial account of the entity, the controlled person, or another controlled person of the entity.
For purposes of this notice, a controlled person is a U.S. person or foreign entity more than 50 percent owned by a regulated entity as described in 31 CFR §1010.350(f)(2)(i)-(v).
Employees or Officers of SEC-Registered Investment Advisors With Signature Authority Over Foreign Financial Accounts
FinCEN Notice 2011-2 further provides a one-year extension to June 30, 2012, to:
- An employee or officer of an investment advisor registered with the Securities and Exchange Commission who has signature or other authority over and no financial interest in a foreign financial account of persons that are not investment companies registered under the Investment Company Act of 1940.
This extension is applicable to FBARs for calendar year 2010 and FBARs for calendar year 2009 or earlier for which the filing deadline was properly deferred under IRS Notices 2009-62 and 2010-23. FinCEN Notices 2011-1 and 2011-2 may be found at www.fincen.gov.
Note that each of these extensions does not apply to persons with financial interests in foreign financial accounts in calendar years prior to 2010 and only applies to certain persons with signature authority only over foreign financial accounts.
Please contact Stacy Secker at 715.858.6644 or ssecker@wipfli.com, or your Wipfli relationship executive, if you have any questions regarding the FBAR or the extensions described above.
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This information is provided solely for general guidance and informational purposes only and does not create a business or professional-services relationship. Accordingly, this information is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal, or other competent advisers and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code. Before making any decision or taking any action, you should obtain appropriate professional guidance.
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