The IRS issued a new notice, Notice 2001-31, providing guidance to taxpayers on how they should answer questions on their 2010 federal income tax and information returns relating to foreign financial accounts (FFAs). For returns filed before March 28, the effective date of the recently published final Report of Foreign Bank and Financial Accounts (FBAR) regulations, a taxpayer may reference either the older regs which remain in effect at that time or the new final regulations. However, for returns filed on or after March 28, a taxpayer should reference only the new final regulations.
On Feb. 24, 2011, the Treasury Department’s Financial Crimes Enforcement Network (FinCen) published final FBAR regulations largely adopting the proposed regs. The final regs are effective on Mar. 28, 2011, and they apply to FBARs required to be filed by June 30, 2011 with respect to FFAs maintained in 2010, as well as to FBARs for future calendar years.
IRS posted revised FBAR instructions titled “DRAFT Final Instructions” on Mar.. 21, 2011 at www.irs.gov/businesses/small/article/0,,id=148849,00.html. On Mar. 26, 2011, a revised FBAR form, which reflected a different format but had no substantive changes from the draft, was published with accompanying instructions that reflect the amendments made by the final FBAR regs.
Copyright (c) 2011 Igor S. Drabkin. All Rights Reserved.