TAX CLIENT ALERT: Additional Guidance on Foreign Financial Account Reports

    View Author 19 March 2010
    On February 26, 2010, the Internal Revenue Service (the “IRS”) issued further guidance with respect to the requirements imposed pursuant to the Bank Secrecy Act of 1970 that U.S. persons file a Report of Foreign Bank and Financial Accounts (commonly referred to as FBAR). In addition, on the same date, the Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued proposed regulations with respect to FBARs. This memorandum contains a brief summary of the IRS announcements, which affect FBAR filings for 2009 and prior years. A separate memorandum will describe the principal provisions of the proposed regulations, which could be changed following the period for public comment and may be affected by the provisions of the Foreign Account Tax Compliance Act, which was included in legislation (H.R. 2847, Pub. L. No. 111-147) passed on March 17, 2010 to impose additional requirements with respect to foreign financial accounts of U.S. persons.