INTERNATIONAL TAX

Foreign Bank Account Report Update

On Jan. 20, 2010, the AICPA International Tax Resource Panel’s Foreign Bank Account Report (FBAR) Task Force met to discuss the status of current foreign bank account reporting including Form TD F 90-22.1 filing needs and Internal Revenue Service (Service) guidance.

Christine Ballard, an McGladrey Tax Managing Director in Washington, D.C., participated in the meeting and highlights the following considerations:

• Nonresidents and foreign corporations doing business in the U.S. may well have to begin filing FBARs in 2010.
• Individuals who are only signatories on foreign accounts must address their potential need to submit FBARs.
• There are certain exceptions that apply for foreign account signatories employed by large companies and banks that exempt a limited population.

The Service last issued guidance in Aug. 2009 and has indicated additional guidance is forthcoming.

Border Crossing

RSM International, the international network supporting the clients of McGladrey worldwide, has published its quarterly periodical, Border Crossing, which addresses international tax topics. The periodical is a timely and informative look at worldwide tax happenings.