FBAR Update: Temporary Relief from Reporting Interests in Offshore Investment Funds

On February 26, 2010, the U.S. Department of the Treasury (the “Treasury”) published proposed rules designed to clarify filing requirements with respect to Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”). Although the proposed rules must be finalized before they can take effect, the Internal Revenue Service (“IRS”) on the same date issued both an announcement and a notice to provide immediate administrative relief to certain persons potentially subject to FBAR filing requirements. Together, this FBAR-related guidance provides much needed clarity and relief, if in some cases only temporary, for potential filers.