Recent IRS Guidance Gives Certain Investors in Foreign Private Investment Funds Breathing Room Until September 23, 2009 for Potential FBAR Filings


Responding to the recent uproar over learning that the revised instructions for the Foreign Bank Account Report (“FBAR”) form[1] may require reporting of interests in foreign private investment funds (e.g., foreign private equity and hedge funds),[2] the Internal Revenue Service (“IRS”) issued guidance yesterday extending the June 30, 2009 filing deadline to September 23, 2009 for certain taxpayers. Specifically, the IRS announced that taxpayers who reported and paid tax on all of their 2008 taxable income and who recently learned that they have an FBAR filing obligation but cannot gather the necessary information to file an FBAR form by June 30, 2009, should file a delinquent FBAR report according to the FBAR form instructions, together with a copy of their 2008 tax return, by the new September 23rd deadline. The IRS further stated that, in these situations, the IRS will not impose a penalty (normally $10,000 for non-willful violations and substantially more for willful violations) for failure to file an FBAR. Other taxpayers not covered by yesterday?s guidance must still file their FBAR forms on June 30, 2009.

Please see full update for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.