Joan C. Arnold
In our May 17, 2011 Tax Update,
"Significant Changes to FBAR Filing for Employees of Public Companies
Applicable to 2010 Filings," we discussed the revised rules for the
filing of TD Form 90-22.1, on which a U.S. person has to report an
interest in a foreign financial account. In response to comments that
have been received by the government, filings in certain circumstances
have been deferred, with a due date of June 30, 2012 for reporting with
respect to the year 2010.1
The extension is aimed at U.S. citizens or residents who have signing
authority over, but no financial interest in, foreign financial accounts
maintained by their employer. The extension principally applies to
public companies and companies that are subject to government oversight.
With respect to individuals employed by certain listed companies or their subsidiaries, the following deferrals apply:
Similar deferrals may exist for employees of banks, SEC regulated
companies, registered investment advisors, and their subsidiaries. The
charts found in our April 22, 2011 Tax Alert, "Preparing to File Report of Foreign Financial Accounts by June 30, 2011" provide a more complete overview of the FBAR rules.
This is welcome news for public company employees, and we applaud the
results of the notice. There is some hope that the deferral will be
made permanent. We note that the government did not accept requests to
similarly defer filings by employees of private companies of a certain
size because they felt that government oversight is a necessary feature
for deferral. Thus, employees of many large privately held companies are
still subject to reporting by June 30, 2011 for 2010.
FinCEN Notice 2011-1 FBAR Filing requirements - Extended Filing Date
Related to Exceptions Described in 31 CFR 1010.350(f)(2). May 31, 2010.
material in this publication was created as of the date set forth above
and is based on laws, court decisions, administrative rulings and
congressional materials that existed at that time, and should not be
construed as legal advice or legal opinions on specific facts. The
information in this publication is not intended to create, and the
transmission and receipt of it does not constitute, a lawyer-client
article is republished with permission of Pepper Hamilton LLP. Further
duplication without the permission of Pepper Hamilton LLP is prohibited.
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