FBAR Guidance and Proposed Rules Released by IRS
March 1, 2010
Public colleges and universities would be exempt from annual foreign bank account reporting (FBAR) on Form TD F 90-22.1, according to rules proposed by the Treasury Department. The proposal defines the types of accounts for which reports would be required, as well as those that would be exempt from filing. Consolidated reporting may be done when the filer has a financial interest in 25 or more foreign financial accounts. In those cases, only a listing and number of accounts need be provided on the annual report. Entities which own more than a 50 percent interest in one or more other entities required to do FBAR reporting may file a consolidated report.
No FBAR Filings Required for Pre-2009 and 2009 Hedge Funds and Private Equity Funds.
While the notice of proposed rulemaking (NPRM) does not address the future treatment of commingled funds, it states that mutual funds are generally required to file an FBAR. However, Notice 2010-23 clarifies that the IRS will not apply the term "commingled fund" to funds other than mutual funds for calendar year 2009 and prior years. In other words, the IRS will not apply enforcement adversely in the case of persons with a financial interest in, or signature authority over, any other foreign commingled fund with respect to that account for 2009 and earlier years. This expressly includes foreign hedge funds and private equity accounts. The notice further specifies that persons with signature authority, but no financial interest in, a financial account for which an FBAR would otherwise have been due on June 30, 2010, will now have until June 30, 2011, to report on those accounts.
IRS Announcement 2010-16 provides a continuation of the suspension of FBAR filing requirements for persons who are not U.S. citizens, U.S. residents, or domestic entities.
Share Comments with NACUBO.
The NPRM was published on Friday, February 26. Comments are due April 27. NACUBO will be submitting comments to the IRS. Please send comments from your institution to firstname.lastname@example.org.
Director, Tax Policy
- Broad Coalition Presses for Expansion of Employer-Provided Tuition Benefits
- New GASB Standard Tackles Fiduciary Activities
- New Report Details Charitable Giving to Colleges and Universities
- WEBCAST: Planning Components of Civil Discourse
Wednesday, March 15, 2017 1:00PM ET
- WEBCAST: NACUBO Live! 2017 Student Financial Services Conference
- ON-DEMAND: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
- ON-DEMAND: Compliance Challenges for the New EPA Hazardous Waste Rule
- ON-DEMAND: The ROI of Student Success: Practical Considerations for Measuring and Conveying the Financial Value of Student Support Services
- ON-DEMAND: NACUBO Live! Student Financial Services Conference