Tax News
Additional FBAR Relief for Certain Foreign Financial Account Signatories (Notice 2011-54)
June 19, 2011
Administrative Actions
On June 16, 2011, the IRS, in Notice 2011-54, further extended the deadline from June 30, 2011, to November 1, 2011, for the filing of the Report of Foreign Bank and Financial Accounts (FBAR) for persons with no financial interest in a foreign financial account but with signatory or other authority over such accounts for calendar years 2009 or earlier.  The deadline continues to be June 30, 2011 for calendar year 2010.

Notice 2011-54 benefits investment funds and managers that have authority over foreign financial accounts in which such investments fund or managers have no legal or beneficial ownership interest.  These investment funds and managers now have until November 1, 2011, to determine if they are required to file a FBAR in respect of any such foreign financial accounts and, if so, then to file the FBAR.  The relief provided under this notice also gives such persons additional time to gather the required information.

The IRS, together with the Financial Crimes Enforcement Network (FinCEN), are granting this additional relief because they have been informed that persons with signature authority over foreign financial accounts in which they have no financial interest are having difficulty in collecting the required information to permit a complete and accurate FBAR filing with respect to calendar years prior 2010.

The IRS also noted that the relief provided in its Notice 2011-54 does not limit the relief provided by FinCEN in its Notice 2011-1, which extends the FBAR filing deadline to June 30, 2012 for certain persons.

Importantly, the notice does not affect the requirement to provide information or file FBARs in connection with the IRS’s 2009 Offshore Voluntary Disclosure Program or the Offshore Voluntary Disclosure Initiative.  The notice further does not alter the deadline for electing to participate in, or fulfilling the submission requirements, of the Offshore Voluntary Disclosure Program or the 2011 Offshore Voluntary Disclosure Initiative.

IRS Notice 2011-54 can be found here.
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Tags: FBAR, FBAR fund managers, FBAR signature authority, Notice 2011-54