In February 2010 the IRS published Notice 2010-23, which provides that persons with financial interests in foreign hedge funds or foreign private equity funds will not be required to file FBARs for such interests for calendar year 2009 and earlier years. Notice 2010-23 also extends the filing deadline for persons with signature authority over, but no financial interest in, foreign financial accounts. FBARs for 2009 (which would otherwise have been due on June 30, 2010) and earlier years are now due on June 30, 2011.

The Treasury has also proposed regulations that make clear that reportable financial accounts include mutual funds and similar pooled funds. The proposed regulations reserve judgment on whether interests in offshore investment funds, such as hedge funds and private equity funds, constitute reportable financial accounts. The proposed regulations would also create FBAR filing exemptions for (i) participants in qualified plans and owners of individual retirement accounts (only the trustee would be obligated to file the FBAR) and (ii) investment advisers providing advice to entities registered with the SEC. The Lowenstein Sandler Investment Management and Business Tax Groups alert summarizing the FBAR requirements is available here.