If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
The form must be submitted by U.S. persons with signature authority over or a financial interest in a financial account outside of the U.S.
The FBAR form for 2010 must be received by the Treasury Dept by June 30, 2011. There are no extensions.
It may be complicated to determine whether you are required to file this form. The form instructions do not address many questions that have arisen in particular situations.
The good folks over at Gainer, Donnelly & Desroches, LLP (friends of our firm) have provided a flowchart indicating the major decision points you need to review to determine if there is a need to report your accounts.
The penalties for not complying are very severe and you can read more about them on the IRS website.
Late last week the IRS provided a short extension for anyone required to file for year 2009 and earlier, but the 2010 year is still required to be filed by June 30th.
If you believe that you may need to file, please contact us for further assistance.