FBAR Filing Requirement May Apply to Interests in Foreign Pooled Investment Funds; IRS Has Issued New Guidance on June 30 Filing Deadline
By Paul Hastings Professional
Statements made by senior Internal Revenue Service (IRS) personnel in a recent teleconference have created substantial uncertainty over the Report of Foreign Bank and Financial Accounts (FBAR) filings that may be required by U.S. individuals and entities with a financial interest in, or signature or other authority over, investment partnerships and corporations domiciled outside of the United States.
In response to numerous inquiries from investors, managers and advisors, the IRS has provided temporary relief from the June 30, 2009 FBAR filing deadline for filers who (1) have only recently learned of their FBAR filing obligation, (2) have insufficient time to gather information necessary to complete the FBAR, and (3) have reported and paid the tax on all their 2008 taxable income. In such case, the filer can file a delinquent FBAR by September 23, 2009 with an attachment explaining the reason for the late filing, and the IRS will not impose a penalty for failing to file by June 30, 2009.