Notice 2009-62 Relief from FBAR Reporting Requirements.
In late 2008, the IRS indicated that foreign “financial accounts” subject to FBAR Reporting include interests in commingled funds maintained outside the U.S. (e.g., foreign mutual funds, foreign private equity funds, foreign hedge funds, etc.). The IRS’s expansive interpretation of “financial account” to include foreign commingled funds was roundly criticized as an unwarranted deviation from prior practice. In response to that criticism and to extend the FBAR filing deadline for certain U.S. persons, on August 10, 2009 the IRS issued Notice 2009-62. That Notice extends to June 30, 2010 the deadline for submitting required FBAR Reports for 2008 and earlier years by: (i) persons with mere signature or other comparable authority over, but no ownership or other financial interest in, a foreign financial account; and (ii) persons with an ownership or other financial interest in, or signatory authority over, a foreign financial account in which the assets are held in a commingled fund.
U.S. persons who qualify for the extended FBAR return due date may wish to avail themselves of the extension to catch up on delinquent FBAR filings. The extended FBAR due date is not available, however, for taxpayers who own or otherwise have a financial interest in foreign financial accounts other than foreign commingled funds. Nor does the extended due date for some FBAR filings provide relief from the civil and potential criminal penalties associated with failures to properly report and pay taxes on income earned in foreign financial accounts.
