Treasury Unveils Revised Rules on Taxpayers Required to Report Foreign Bank Accounts

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The Treasury Department Feb. 26 published in the Federal Register revised, long-awaited regulations clarifying which taxpayers will be required to file the Report of Foreign Bank Account (FBAR) and which accounts will be reportable.
 
The proposed rules, formally drafted by Treasury's Financial Crimes Enforcement Network (FinCEN), would exempt certain persons with signature or other authority over foreign financial accounts, a feature many commenters had requested from Treasury in recent months and weeks.
 
The rules also include a new definition of a “United States person,” described as a citizen or resident of the United States, or an entity, including but not limited to a corporation, partnership, trust or limited liability company, created, organized or formed under the laws of the United States, any state, the District of Columbia, the territories and insular possessions of the United States, or the Indian tribes.
 
The proposed rules also contain provisions intended to prevent United States persons required to file the FBAR from avoiding the reporting requirement.