TheInternal Revenue Service and the Financial Crimes Enforcement Network (FinCEN)announced on May 31, 2011 that a small subset of individuals with only signatureauthority required to file the Report of Foreign Bank and Financial Accounts(FBARs) will receive a one-year extension beyond the upcoming filing date ofJune 30, 2011.
On May31, 2011, FinCen issued Notice 2011-1 that extends the deadline until June 30, 2012,for the following individuals:
- An employee or officerof a covered entity who has signature or other authority over and no financialinterest in a foreign financial account of another entity more than 50 percentowned, directly or indirectly, by the entity (a "controlled person").
- An employee or officerof a controlled person of a covered entity who has signature or other authorityover and no financial interest in a foreign financial account of the entity oranother controlled person of the entity.
Allother U.S. persons required to file an FBAR this year are required to meet the June 30, 2011, filingdate. Unlike with federal income tax returns, extensions of time to file are notavailable. Despite the availability of this new extension to the small subset ofindividuals, each individual should still strongly consider filing requiredFBARs by the original filing date, despite the availability of theextension.
Thenotice was issued to facilitate more accurate compliance of FBAR filings in thewake of recent finalization of regulations. The FBAR filing requirements,authorized under one of the original provisions of the Bank Secrecy Act, havebeen in place since 1972.
On Feb.24, 2011, FinCEN published a final rule that amended the Bank Secrecy Act regardingFBARs.
The FBARform is used to report a financial interest in, or signature or other authorityover, one or more financial accounts in foreign countries.
U.S.persons are required to file FBARs Form TD F 90-22.1 annually if they have a financial interestin or signature authority over financial accounts, including bank, securities orother types of financial accounts, in a foreign country, if the aggregate valueof these financial accounts exceeds $10,000 at any time during the calendaryear.