Vernoia, Enterline + Brewer, CPA LLC

Posts tagged ‘Qualified Electing Fund’

IRS, FinCEN provide more foreign account filing extensions

The IRS and Treasury’s Financial Crimes Enforcement Network (FinCEN) have announced new extensions for certain filers to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (known as the “FBAR”).  At the same time, the IRS has suspended filing requirements under the Foreign Account Tax Compliance Act (FATCA) title of the Hiring Incentives to Restore Employment (HIRE) Act of 2010 for certain filers.

Reporting requirements

U.S. taxpayers may be required to report their foreign accounts under the long-standing FBAR rules or the new FATCA rules. In February 2010, FinCEN issued final FBAR regulations.  The IRS is currently developing FATCA rules.

FBAR extensions

In recent months, the IRS and FinCEN discovered that some taxpayers have experienced difficulties in meeting the FBAR deadlines. In response, the IRS provided an extended filing deadline (November 1, 2011) for filers having signature authority over, but no financial interest in, a foreign account in 2009 or earlier years for which the reporting deadline had been extended by Notice 2009-62 or Notice 2010-23.

FinCEN has extended the filing deadline for calendar year 2010 FBARs to June 30, 2012 for officers and employees of investment advisors that have signature authority over, but no financial interest in, foreign accounts of persons that are no registered investment companies under the Investment Company Act of 1940. Earlier in 2011, FinCEN extended the filing deadline for 2010 FBARs for certain financial professionals.

FATCA forms

Taxpayers will use new Form 8938, Statement of Foreign Financial Assets to report under FATCA. However, the IRS has not yet published Form 8938. Therefore, the IRS has suspended the filing requirement until it publishes Form 8938. The IRS also has suspended the filing requirement under FATCA for Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, until that form is revised. After the forms are released, taxpayers will be required to file the forms for the year in which the filing requirement was suspended.

If you have questions about the FBAR or FATCA filing requirements, please contact our office.