n-10-23.pdf

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# Part IV - Items of General Interest

FBAR FILING REQUIREMENTS - ADMINISTRATIVE RELIEF FOR PERSONS
HAVING SIGNATURE AUTHORITY OVER, BUT NO FINANCIAL INTEREST IN, A
FOREIGN FINANCIAL ACCOUNT, AND FOR PERSONS WITH A FINANCIAL
INTEREST IN, OR SIGNATURE AUTHORITY OVER, CERTAIN FOREIGN
COMMINGLED FUNDS

Notice 2010-23

This Notice provides administrative relief to certain persons who may be required
to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for
calendar year 2009 and earlier calendar years.

On August 31, 2009, the Internal Revenue Service published Notice 2009-62,
2009-35 I.R.B. 260, which extended the filing deadline for (i) persons with no financial
interest in a foreign financial account but with signature or other authority over that
account (hereinafter referred to as "signature authority"); and (ii) persons with a financial
interest in, or signature authority over, a foreign financial account in which the assets
are held in a commingled fund (hereinafter referred to as "foreign commingled funds").
This extension was provided in order for the Treasury Department to have the time
necessary to develop comprehensive FBAR guidance.

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To assist in the development of comprehensive FBAR guidance, Notice 2009-62
also requested public comments regarding a person's FBAR filing obligation, including
(i) when a person with signature authority over, but no financial interest in, a foreign
financial account should be relieved of filing an FBAR for that account; (ii) whether the
exception from FBAR filing available for officers and employees of banks and certain
publicly-traded domestic companies should be expanded; (iii) when an interest in a
foreign entity should be subject to FBAR reporting; and (iv) whether a United States
person should be relieved from an FBAR filing requirement with respect to a foreign
commingled fund in other circumstances, such as when filing would be duplicative of
other reporting.

Since the issuance of Notice 2009-62, and receipt of a significant number of
public comments, the Treasury Department has published proposed FBAR regulations
under 31 CFR Part 103, as well as proposed revisions that clarify instructions for the
FBAR (Form TD F 90-22.1). To provide taxpayers with guidance on who is required to
file FBARs due on June 30, 2010, and in particular to provide immediate guidance to
taxpayers on how to answer FBAR-related 2009 federal income tax return questions
(e.g., Schedule B of Form 1040, the "Other Information" section of Form 1041, Schedule
B of Form 1065, and Schedule N of Form 1120), the IRS and Treasury Department
believe it is appropriate to provide the following administrative relief:

1\. Signature Authority.

Persons with signature authority over, but no financial interest in, a foreign
financial account for which an FBAR would otherwise have been due on June 30, 2010,
will now have until June 30, 2011, to report those foreign financial accounts. The

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deadline of June 30, 2011, applies to FBARs reporting foreign financial accounts over
which the person has signature authority, but no financial interest, for the 2010 and prior
calendar years. When completing an FBAR that is subject to the extension provided in
this paragraph, persons must adhere to FBAR guidance in effect at the time the FBAR
is filed.

## 2. Certain Foreign Commingled Funds.

Persons with a financial interest in, or signature authority over, a foreign
commingled fund that is a mutual fund are required to file an FBAR unless another filing
exception, as provided in the FBAR instructions or other relevant guidance, applies.
The IRS will not interpret the term "commingled fund" as applying to funds other than
mutual funds with respect to FBARs for calendar year 2009 and prior years. Thus, the
IRS has determined that it will not apply its enforcement authority 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 calendar year 2009 and earlier
calendar years. A financial interest in, or signature authority over, a foreign hedge fund
or private equity fund is included in the administrative relief provided in the preceding
sentence.

## 3. FBAR-Related Questions on Federal Tax Forms.

Provided the taxpayer has no other reportable foreign financial accounts for the
year in question, a taxpayer who qualifies for the filing relief provided in this Notice
should check the "no" box in response to FBAR-related questions found on federal tax
forms for 2009 and earlier years that ask about the existence of a financial interest in, or
signature authority over, a foreign financial account.

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EFFECT ON OTHER DOCUMENTS

Notice 2009-62 is modified and supplemented.

The principal author of this Notice is Mark E. Cottrell of the Office of Associate
Chief Counsel (Procedure and Administration). For further information regarding this
Notice, contact Emily M. Lesniak at (202) 622-4940 (not a toll-free call).