Foreign Bank Account Reports (FBARs) Due June 30, 2010

This updates our March 17, 2010, In Brief Tax client alert discussing new proposed regulations governing the reporting of foreign bank, brokerage and other foreign financial accounts ("FBAR") on Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts). Each U.S. person who, during calendar year 2009, had a "financial interest" in, or "signature or other authority over," a financial account in a foreign country must file an FBAR with the U.S. Department of the Treasury no later than June 30, 2010. The obligation to file is applicable if, during calendar year 2009, the aggregate amount in one or more foreign financial accounts exceeded $10,000.

The term "U.S. person" includes a U.S. citizen, resident and domestic entity (including U.S. entities that are disregarded entities for U.S. tax purposes). However, for FBAR reports due June 30, 2010, this definition does not include non-residents or foreign entities doing business in the United States.