On Friday, June 17, 2011, FinCEN announced, in Notice 2011-2, a one-year extension, until June 30, 2012, of the FBAR filing date applicable to officers and employees of an SEC registered investment advisor who have signature or other authority over, but no financial interest in, a foreign financial account of a person that is not an investment company registered under the Investment Company Act of 1940. The deferral applies to both (i) 2010 FBARs and (ii) 2009 or earlier year FBARs the filing of which were properly deferred under Notices 2009-62 or 2010-23.
Note that this extension is in addition to the existing exception, under applicable FBAR regulations, for employees or officers of an SEC registered investment advisor who have signature authority over, but no financial interest in, a foreign financial account of an investment company registered under the Investment Company Act of 1940 to which such investment advisor provides services (the “Authorized Service Provider” exception). For additional information on FBAR filing requirements generally, attached is a link to our FBAR client memorandum discussing the final regulations and updated instructions.
Note also that FinCEN Notice 2011-2 provides officers and employee of SEC registered investment advisors with greater relief than the recently issued IRS Notice 2011-54 which deferred FBAR filings until November 1, 2011 in respect of 2009 or earlier year FBARs (but not 2010). For additional information on IRS Notice 2011-54, attached is a link to our related FBAR client memorandum.
IRS Circular 230 Disclosure: Any U.S. tax advice herein was not intended or written to be used, and cannot be used, by any taxpayer to avoid U.S. tax penalties. Any such tax advice that is used or referred to by others to promote, market or recommend any entity, plan or arrangement should be construed as written in connection with that promotion, marketing or recommendation, and the taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.