Igor S. Drabkin, J.D., Former IRS Attorney
The IRS issued a new notice, Notice 2009-62, 2009-35 IRB, which extends the due date for filing Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (FBAR)) in certain cases.
The extension applies only to the following individuals:
(i) persons with signature authority over, but no financial interest in, a foreign financial account, and
(ii) persons with a financial interest in, or signature authority over, a foreign commingled fund.
Those persons have until June 30, 2010, to file an FBAR for the 2008 and earlier calendar years with respect to these foreign financial accounts.
Each U.S. person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year by filing TD F 90-22.1, with the Department of the Treasury on or before June 30 of the succeeding year.
On May 6, 2009 and June 24, 2009, the Internal Revenue Service posted questions and answers on its website providing relief to certain persons who only recently learned of their obligation to file an FBAR by setting forth conditions and procedures for filing Form TD F 90-22.1 by September 23, 2009.
Notice 2009-62 provides additional administrative relief for (i) persons with no financial interest in a foreign financial account but with signature or other authority over the foreign financial account (hereinafter referred to as “signature authority”), and (ii) persons with a financial interest in, or signature authority over, a foreign financial account in which the assets are held in a foreign commingled fund.
Notice 2009-62 extends the FBAR filing requirements for persons with signature authority over, but no financial interest in, a foreign financial account, and persons with a financial interest in, or signature authority over, a foreign commingled fund. Those persons have until June 30, 2010, to file an FBAR for the 2008 and earlier calendar years with respect to these foreign financial accounts. Thus, eligible persons that avail themselves of the relief may need to file FBARs for the 2008, 2009 and earlier calendar years on or before June 30, 2010, to the extent provided in future guidance.
If you have an offshore bank account or have signature authority over an offshore bank account, you may be well advised to consult with a tax attorney about avoiding criminal tax charges or huge civil penalties. Former IRS Attorneys of Holtz, Slavett & Drabkin can assist you with your offshore tax matters and can be reached at (310) 550-6200.
Author: Igor S. Drabkin, J.D., Former IRS Trial Attorney
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