IRS Report of Foreign Bank and Financial Accounts “FBAR” Update

On February 24, 2011, the Financial Crimes Enforcement Network (FinCEN) published final regulations amending the FBAR regulations. These regulations became effective on March 28, 2011, and apply to FBARs required to be filed with respect to foreign financial accounts maintained in calendar year 2010 and for FBARs required to be filed with respect to all subsequent calendar years.

One of the more significant changes is the change of the definition of a “US Person” when dealing with FBAR filings. The definition now includes “Limited Liability Company’s”. The full definition now reads as follows:

“United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.”

The FBAR form and instructions have been revised to reflect the amendments made by the final regulations. You can visit www.irs.gov and type “FBAR” in the search box for the latest information and forms with reference to FBAR Regulations.

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