“IRS Grants Certain Taxpayers an FBAR Filing Deadline Extension to September 23, 2009”

On June 24, 2009, the IRS issued a revised Frequently Asked Questions (FAQ), granting certain taxpayers an extension to September 23, 2009 for filing Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (“FBAR”).  Previously, every U.S. person or entity that at any time during the 2008 calendar year had a financial interest in, or signature or other authority over, any financial account located in a foreign country, where the aggregate value exceeded $10,000, had to file an FBAR by June 30th, 2009.  On June 12, 2009, contrary to current market practice, IRS representatives indicated on a teleconference that an equity interest in an offshore hedge fund would be treated as a foreign financial account for purposes of FBAR filings.  The IRS may issue official guidance before either the June 30, 2009 or September 23, 2009 deadlines.  Given the potential penalties for non-compliance, the U.S. persons described in this Stroock Special Bulletin should consider making, or at least being prepared to make, precautionary filings, as discussed in this Stroock Special Bulletin