FBAR due on 30 June 2011
The FBAR should be filed with the US Department of the Treasury by 30 June following the year-end for a “US Person” that has a financial interest in or signature or other authority over bank, securities or other financial accounts in a foreign country where the combined total maximum balance of all accounts exceeds $10,000 (using the forex rate as at 31 December, 1.5625 USD = 1GDP, 1.2987 USD = 1EUR), at any time during the calendar year.
In addition, a US person with signature authority over a foreign account, but no financial interest in the account, generally has until 30 June 2011 to report those accounts.
NB: 30 June is the date by which FBARs must be received by the Treasury Department. The usual tax return rule that a foreign postmark establishes the filing date does not apply to FBARs.
The expanded definition of “financial account,” now means that additional reports are due for certain foreign investment accounts. In particular, persons with a financial account in, or signatory authority over, a foreign commingled fund must file an FBAR if the fund is a mutual fund.
As a final note, many UK personal pensions, such as SIPPs, are considered to be foreign financial accounts, for which FBAR reportings are required as are life insurance contracts with value. For further information please get in touch with your usual Buzzacott contact or email us with your enquiry at firstname.lastname@example.org.