The Foley Adviser

IRS Issues Moratorium on Certain Annual Information Reports on Foreign Financial Accounts (FBARs)

August 10, 2009

On Friday August 7, the IRS further extended the deadline to file Treasury Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, commonly known as an “FBAR”) for 

  • persons who have only signature authority over a foreign financial account, but no financial interest in the account; and 
  • persons who have financial interests in “commingled funds,” including offshore hedge funds, private equity funds and mutual funds. 

The extended deadline is June 30, 2010, and applies to FBARs for 2008 and earlier years. The extension does not apply to persons who have financial interests in traditional financial accounts such as bank and brokerage accounts.

The IRS made the announcement in Notice 2009-62. The IRS also announced that it is studying these questions and has solicited comments from interested parties, with a view to issuing regulations clarifying the requirements.