As reported in a prior Legal Update, the Internal Revenue Service (“IRS”) has informally taken the position that U.S. sponsors of, and U.S. investors in, private investment funds were required to file the Foreign Bank Account Report (“FBAR”) form[1] with respect to such investments.[2] Last Friday, an IRS spokesperson confirmed that position with Tax Analysts when he stated that the IRS?s position is that investments in foreign hedge and private equity funds are reportable for FBAR purposes.[3]

Please see full update for more information.