IRS Issues Further Guidance on the Reporting of Foreign Financial Assets
December 19, 2011
Summary: Temporary regulations issued recently provide additional guidance for taxpayers who will be required to report interests in foreign financial assets to the IRS beginning with the 2011 tax year. Taxpayers will need to attach Form 8938 (Statement of Specified Foreign Financial Assets) beginning with their 2011 tax return to report a variety of foreign financial assets, including interests in foreign entities, financial accounts, investment arrangements and securities. Many taxpayers affected by the new regulations are already under an obligation to file a Form TD F 90-22.1: Report of Foreign Financial Accounts (FBAR), possibly even for the same financial assets. Those affected by the regulations should discuss their new obligations with counsel ahead of the 2011 tax filing season.
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