Final Rules for FBAR Filing Requirements
Over the last few years, there has been much concern as to what types of foreign investments must be reported on the Report of Foreign Bank and Financial Accounts (“FBAR”), with multiple, sometimes contradictory, notices being issued. On March 28, 2011, the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Treasury (“Treasury”) issued final rules under 31 U.S.C. § 5314 that reserve the treatment of investment companies other than mutual funds with regard to the filing requirements for the FBAR. Thus, there is no FBAR filing requirement in 2011 for holders of interests in commingled funds, other than foreign mutual funds, for 2010. This treatment will change in 2012 for individuals who have commingled funds in 2011; however, for other taxpayers (including nonprofit tax-exempt organizations), the reporting of commingled funds will change only if new rules on the treatment of investment companies other than mutual funds under 31 U.S.C. § 5314 are put into place.