Foreign Bank Account Reporting is Due June 30, 2009. Late or Didn't Know to File? What To Do Now.

By Ron Cohen, CPA, MST
Partner
Greenstein, Rogoff, Olsen & Co., LLP

The I.R.S. has warned they will take this filing deadline more seriously than in the past and impose penalties on late or non-filers. PLEASE TAKE THIS SERIOUSLY!

Form TD F 90-22.1 (Report of foreign Bank and Financial Accounts, commonly known as an “FBAR”).

Who Must File this Report. Each United States person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year by filing this report with the Department of the Treasury on or before June 30, of the succeeding year.

FBAR Filings Must Be Received by June 30.

Unlike the rule for tax forms, FBAR forms are deemed filed when received by the IRS, not when postmarked. (As a result, use of certified mail with return receipt requested is recommended.) No extension of time to file is granted.

1) Penalties for failure to comply with the Bank Security Act requirement that United States persons report their financial interest in, or authority over, financial accounts located in a foreign country.

U.S. citizens, residents, and certain other persons, must annually report their financial interest in, or signature authority (or other authority that is comparable to signature authority) over, a financial account (such as a bank or investment account) that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $10,000 at any time during the year. This reporting requirement is met by filing Form TD F 90-22.1 (Report of foreign Bank and Financial Accounts, commonly known as an “FBAR”). FBARs are filed with a Department of the Treasury facility located in Detroit and are not to be filed with tax returns; the filing date for FBARs is June 30th. The requirement to file FBARs is in the regulations under 31 U.S.C. § 5314 (which is a provision of the Bank Secrecy Act). Generally, the civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account. Criminal penalties may also apply. Refer to IRM 4.26.16.4 for additional FBAR penalty considerations.

See: http://www.irs.gov/pub/irs-pdf/f90221.pdf

Street Address for FBAR submissions by private delivery services:

IRS Detroit Computing Center
Attn: FBAR Mail Room, 4th Floor
985 Michigan Ave.
Detroit, MI 48226

The contact phone number to give to the delivery service for the IRS Detroit Computing Center is 313-234-1062.

Hedge-Funds and Private Equity Funds have suddenly become aware they are subject to the FBAR rules.

Please see: IRS Steps Up Scrutiny of Offshore Funds

Confusion over filing requirement for non-U.S. residents and non-domestic legal entities.  They are Not Required to File, until the IRS issues new rules.

According to a FAQ still available on the IRS Web site as of this writing on July 1, 2009, the October, 2008 revised instructions for Form TD F 90-22.1 would have changed the definition to include a citizen or resident of the United States, or a person in and doing business in the United States. The term “person” would include individuals and all forms of business entities, trusts and estates. Instead, the IRS is reverting to the definition in the old instructions, under which the term “United States person” means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.”

The IRS said that it will need to issue additional guidance on the filing requirements for future years with regard to non-citizen, non-resident, filing requirements.

See IRS Website Link on this issue at:   http://www.irs.gov/newsroom/article/0,,id=209418,00.html   and Announcement 2009 – 51 at:  http://www.irs.gov/pub/irs-drop/a-09-51.pdf

Comment: This possible future filing requirement will keep non-Citizens, non-residents, and non-domestic entities from doing business in the United States for fear they will have to disclosure non-U.S. investment accounts.  This is a very anti-competitive requirement.  I realize this filing is intended  to help fight money laundering and terrorism by tracking financial accounts, but, at what cost to the economy? It is turning the U.S. into a form-filing, old-Russian type bureaucracy.

More Clarification on the FBAR mess.....

Certain investments will likely require you to file form TD F 90-22.1, irrespective of the percentage of ownership. A financial account includes a “commingled fund” in which the owner has an equity interest. For this purpose, a “commingled fund” specifically includes mutual funds. Thus, accordingly, the Treasury Department has taken the position that a “commingled fund” includes hedge funds and private equity funds.

This expanded filing requirement is not clear from the instructions to the FBAR; nonetheless, based on the statements of IRS officials and the severity of possible penalties for failure to file, we strongly recommend filing if you have any remote concern you need to file, PLEASE FILE. There is no penalty for over-filing, but a “God-Slapping” penalty for under-filing.

Others have commented that the FBAR penalties are the worst (in $ amount and %) in the entire Internal Revenue Code.

How this confusion began:

In a June 12, 2009 panel discussion with the IRS addressing open questions regarding FBAR for calendar year 2008, IRS representatives publicly stated that under their definition, an offshore hedge fund IS a “foreign financial account” for FBAR purposes. Accordingly, they indicated that every U.S. investor in such a fund must file an FBAR, whether or not the fund itself has any offshore bank or securities accounts…and regardless of how much of the total fund they own!!!. These statements, which have been widely reported but have not yet been published by the IRS, came as a surprise to the industry, since (i) the IRS had not previously indicated that the term "commingled fund" was intended to include hedge funds or other privately-offered vehicles, and (ii) the panel’s comments seem inconsistent with previous comments by IRS representatives published subsequent to an IRS 2007 National Phone Forum.

Until further guidance is provided (no change as of 7/26/09), it is not clear whether the panelists’ interpretation is correct, or whether it applies only to hedge funds or also to private equity and other funds. If broadly applied, the following “U.S. persons” are among those who may need to file an FBAR:

• A U.S. investor in an offshore investment fund (or in an offshore feeder fund in a master/feeder fund structure), including U.S. tax-exempt investors (there are indications that this includes a trustee or investment fiduciary of a pension fund or custodian of an IRA account);
• A U.S. investor that owns more than 50% of a U.S. or foreign entity which is a direct investor in an offshore investment fund;
• A U.S. investor in a foreign blocker or other foreign corporation which itself may be considered a commingled fund;
• A U.S. fund of funds, or U.S. feeder fund, that invests in an offshore investment fund;
• A U.S. investment manager with a financial interest (for example, a carried interest common to venture capital investors) in an offshore investment fund; and
• A U.S. individual with signature or other authority to bind an offshore investment fund, or to bind the general partner or managing member of such a fund (in addition to the general partner or managing member itself if it is a U.S. entity).

Again, there has been no change to this interpretation as of 7/24/09, however, an extension until September 23, 2009 has been provided for taxpayers who recently found out they need to file. PLEASE see below regarding the extension to make sure you qualify and the procedure to file.

Update: 3/5/10

Excellent Wall Street Journal article on the recent change and on-going FBAR filing requirements.

http://online.wsj.com/article/SB10001424052748704541304575099852607819826.html?mod=WSJ_newsreel_personalFinance

More FBAR Confusion On Offshore Bank Accounts - IRS Notice 2009-62 Issued 8/7/09

The due date for reporting the existence of Offshore Bank Accounts on Treasury Department Form TD F 90-22.1 has been an issue of great confusion in the last few months.

Form TD F 90-22.1 is known as Foreign Bank Account Reporting (AKA “FBAR”)

For a complete review of this soap opera of events since June, please see: http://www.groco.com/readingroom/intl_foreign_bank_reporting.aspx

On Friday, 8/7/09, the I.R.S. issued Notice 2009-62 in an attempt to clarify the rules. You can decide if the Notice clarified or confused the issue. I just have trouble (with 29 years of experience and a Masters Degree in Taxation) keeping up with who needs to file what by when.

This morning I discussed this issue with the I.R.S. staff in Washington, D.C. who wrote Notice 2009-62.http://www.irs.gov/pub/irs-drop/n-09-62.pdf

THE EXTENSION UNTIL JUNE 30, 2010 in Notice 2009-62 IS FOR TAXPAYERS UNDER (i) and (ii), below. All others, who “only recently learned” of the need to file the FBARs, have only until September 23, 2009 to file for 2008 and 6 prior years to avoid penalties (if they have already paid the income tax on the foreign account income.)

OK, this is confusing. So here’s a more organized review of the rules:

1. Taxpayers who filed FBARs in prior years for the same accounts or always knew they needed to file the FBAR: The due date was June 30, 2009. No extension because it was clear and they always knew they needed to file. File as soon as possible.
2. Taxpayers who “only recently learned” they needed to file, but are not under IRS Notice 2009-62, have a due date to sort it all out and file by September 23, 2009 to avoid FBAR penalties...including any unfiled 6 prior years…unless 4) applies. Follow the filing procedure in Question #9 of the FAQs (link below).
3. Taxpayers with accounts covered by Notice 2009-62 now have until June 30, 2010 to sort everything out based on IRS further guidance which is “forthcoming” Including any unfiled 6 prior years to avoid penalties...unless 4) applies.
4. Taxpayers who did not report the income from the accounts (on Form 1040, Schedule B and/or Schedule D & E for individuals – different forms for partnerships, trusts or corporations) get NO extension and need to immediately pursue a voluntary disclosure by September 23, 2009 and suffer both tax penalties and FBAR penalties that will be 7 times worse after September 23rd. The I.R.S. will also strongly consider criminal prosecution of tax evaders who don’t disclose by September 23, 2009.
   See: http://www.groco.com/readingroom/tax_unreported_offshore_income.aspx Regarding the Voluntary Disclosure Program.

Items (i) and (ii) below are being isolated because the I.R.S. tried to change their interpretation of the rules in June (a few weeks before the due date of the form for tax year 2008) to include special situations that were understood, based on the form instructions and prior IRS verbal guidance, to NOT be accounts that required reporting. The late change to required reporting of those accounts caused a great deal of stress for affected taxpayers and clients as it was unclear who needed to file…all under the threat of a $10,000 penalty (or more if “willful” or fraud) for non-filing. Clearly, the IRS has not even worked out what they want on (i) and (ii), because “future guidance” will be forthcoming.

Well, I’m glad the I.R.S. cleared all that up. Aren’t you?

I.R.S. Notice 2009-62 issue August 7, 2009 says in Sec. B:

“B. Extended Date for Filing an FBAR

In light of the additional time needed for the Department of the Treasury to address issues pertaining to FBAR filing requirements and the need to provide administrative relief for (i) persons with signature authority over, but no financial interest in, a foreign financial account, and (ii) persons with a financial interest in, or signature authority over, a foreign commingled fund, this Notice provides that those persons have until June 30, 2010, to file a FBAR for the 2008 and earlier calendar years with respect to these foreign financial accounts. Thus, eligible persons that avail themselves of the administrative relief provided in this Notice may need to file FBARs for the 2008, 2009 and earlier calendar years on or before June 30, 2010, to the extent provided in future guidance.”

Here’s the IRS FAQ with the September 23, 2009 due date info…
http://www.irs.gov/pub/irs-utl/faqs-revised_6_24_checked_v2.pdf

UPDATE: 6/30/09

PLEASE DO NOT ASSUME THAT, BELOW, AN EXTENSION OF THE DUE DATE IS ALLOWED FOR EVERYONE….as some of our clients have thought! 

I recommend you try to file on time (needs to be received) by June 30, 2009 if at all possible.

1)    If you did not report and pay your tax on the income from the Foreign Bank Account, if required, you don’t qualify for the FBAR EXTENSION AFTER JUNE 30, 2009 to SEPTEMBER 23, 2009, at all.

If your income tax return for 2008 is on valid extension, that counts as timely reporting and paying your tax for 2008, even though your return is not yet filed, as long as you ultimately file – hopefully by the income tax return extension due date – and report the income, and pay all the tax in a timely manner.

2)    If you did report and pay tax on the income from the Foreign Bank Account, if required, you have to attach a statement to the FBAR Form providing some explanation why the form is late and send a copy to the IRS office in Philadelphia, PA.

If you knew about the FBAR requirement prior to a recent June 12^th rule change, but just couldn’t get the information together, that is NOT an excuse for which the extension is allowed.  File absolutely as soon as possible to put yourself in a better position to negotiate any penalties that may be imposed.

3)    If you truly “only recently learned of their FBAR filing obligation and have insufficient time to gather the necessary information to complete the FBAR” and reported all your income as required and paid all your tax, the FBAR extension will apply with no penalties if you file by September 23^rd as instructed in #9, below.  But I still urge you to file as soon as possible and not stretch it out to September 23rd.

4)    If you filed a FBAR in 2008, it is illogical to say you didn’t know to file in 2009 by the June 30^th due date for the same accounts.  We assume the IRS will check their computer records to see if you knew to file in the prior year.

Possible Penalty Trap!!

5)   If you did not file FBARsfor prior years and had a responsibility to file under old or new interpretations, we recommend you immediately follow #9, below, to file for the last 6 unfiled years.  Otherwise, by filing now for 2008, it is clear you NOW know you need to file, and after September 23, 2009, you will have “willfully” (i.e., intentionally) not filed the prior year FBARSs within the amnesty time-window provided to September 23rd, exposing you to the $10,000 Non-willful or $100,000 Willful penalties for non-filing!!!… and may need to someday talk your way out of those penalties, with a good attorney, if that is even possible.

If you also did not report the income from those accounts and were required to, be very careful what you file and call a tax attorney to discuss the IRS Voluntary Disclosure program right away so that you can make all required filings absolutely as soon as possible in a way that minimizes your exposure to penalties.  SEE: http://www.groco.com/readingroom/tax_unreported_offshore_income.aspx for important information on the Voluntary Disclosure program and please be advised, this is NOT a “do-it-yourself” project. Get some professional assistance to protect yourself.

Current Legal Authority From the IRS:

http://www.irs.gov/pub/irs-utl/faqs-revised_6_24_checked_v2.pdf

“43. Re: FAQ 9 A taxpayer recently learned that they have an FBAR filing obligation but they do not have sufficient time to gather the information necessary to properly file the FBAR by the June 30, 2009 due date. How should the taxpayer proceed?

Taxpayers who reported and paid tax on all their 2008 taxable income but only recently learned of their FBAR filing obligation and have insufficient time to gather the necessary information to complete the FBAR, should file the delinquent FBAR report according to the instructions and attach a statement explaining why the report is filed late. Send a copy of the delinquent FBAR, together with a copy of the 2008 tax return, by September 23, 2009, to the Philadelphia Offshore Identification Unit at the address in FAQ 9. In this situation, the IRS will not impose a penalty for the failure to file the FBAR. Additionally, if all 2008 taxable income with respect to a foreign financial account is timely reported and a United States person only recently learned they have a 2008 FBAR obligation and there is insufficient time to gather the necessary information to complete the FBAR, the United States person may follow the procedures set forth above and no penalty will be imposed. For 2008 tax returns due after September 23, 2009, the tax return does not need to accompany the 2008 FBAR.

http://www.irs.gov/pub/irs-utl/faqs-revised_6_24_checked_v2.pdf

9. I have properly reported all my taxable income but I only recently learned that I should have been filing FBARs in prior years to report my personal foreign bank account or to report the fact that I have signature authority over bank accounts owned by my employer. May I come forward under the voluntary disclosure practice to correct this?

The purpose for the voluntary disclosure practice is to provide a way for taxpayers who did not report taxable income in the past to voluntarily come forward and resolve their tax matters. Thus, If you reported and paid tax on all taxable income but did not file FBARs, do not use the voluntary disclosure process.

For taxpayers who reported and paid tax on all their taxable income for prior years but did not file FBARs, you should file the delinquent FBAR reports according to the instructions and attach a statement explaining why the reports are filed late. Send copies of the delinquent FBARs, together with copies of tax returns for all relevant years, by September 23, 2009, to the Philadelphia Offshore Identification Unit at:

Internal Revenue Service
11501 Roosevelt Blvd.
South Bldg., Room 2002
Philadelphia, PA 19154
Attn: Charlie Judge, Offshore Unit, DP S-611

The IRS will not impose a penalty for the failure to file the FBARs.

Prior FAQs for FBAR that is, in part, supersede by the above:

http://www.irs.gov/businesses/small/article/0,,id=148845,00.html

Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties, or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.  No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.  Keep copies, for your record, of what you send.”

http://www.irs.gov/businesses/small/article/0,,id=148845,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR)

1.     What is an FBAR?
An FBAR is a Report of Foreign Bank and Financial Account. The form number is TD F 90-22.1 (PDF).

2.     Who must file an FBAR?
Any United States person who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.

3.     What is a United States person?
A "United States person" includes a citizen or resident of the United States, or a person in and doing business in the United States.  The term "person" includes individuals and all forms of business entities, trusts, and estates.

4.     Would a foreign athlete or entertainer that occasionally visits the U.S. in order to compete or perform in an event, be considered a United States person for FBAR purposes? 
Whether a person is considered, for FBAR purposes, to be in, and doing business in the United States is determined based on an analysis of the facts and circumstances of each case.  Generally, a person is not considered to be in, and doing business in the United States unless that person is conducting business within the United States on a regular and continuous basis.  Persons who are merely visiting the United States or who sporadically conduct business in the United States, are not in, and doing business in, the United States for FBAR reporting purposes.  For example, a person who is not a citizen or resident of the United States, is engaged in a business and only occasionally visits the United States to meet clients would not be in, and doing business in the United States for FBAR reporting purposes.  Also, artists, athletes, and entertainers who are not citizens or residents of the United States and who only occasionally come to the United States to participate in exhibits, sporting events, or performances, do not have to file FBARs.

5.     What is a foreign country?
A “foreign country” includes all geographical areas outside the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands).

6.     What is a financial account?
A “financial account” includes any bank, securities, securities derivatives or other financial instruments accounts. The term includes any savings, demand, checking, deposit, or any other account maintained with a financial institution or other person engaged in the business of a financial institution.  Individual bonds, notes, or stock certificates held by the filer are not a financial account nor is an unsecured loan to a foreign trade or business that is not a financial institution.

7.     What constitutes signature or other authority over an account?
A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.

Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.

8.     What does “maximum value of account” mean (for Box 15 on the FBAR)?
The maximum value of account is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statements issued for the applicable year. If periodic account statements are not issued, the maximum account value is the largest amount of currency or non-monetary assets in the account at any time during the year. Convert foreign currency by using the official exchange rate at the end of the year.

The value of stock, other securities or other non-monetary assets in an account reported on TD F 90-22.1 (PDF) is the fair market value at the end of the calendar year. If the asset is withdrawn from the account, the value is the fair market value at the time of the withdrawal.

9.     Is an FBAR required if the account generates neither interest nor dividend income?
Yes, an FBAR must be filed whether or not the foreign account generates any income.

10.   How do foreign account holders report their accounts to the IRS?
The holders report their foreign accounts by completing boxes 7a and 7b on Form 1040 Schedule B and completing Form TD F 90-22.1 (PDF). 

11.   When is the FBAR due?
The FBAR is due by June 30th of the year following the year that the account holder meets the $10,000 threshold.  The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.   There is no extension available for filing the FBAR.

If an account holder does not have all the available information to file the return by June 30th, they should file as complete a return as they can and amend the document when the additional or new information becomes available.

12.   Where are FBAR forms available?
FBAR forms are available:

• On the IRS.gov (PDF) Web site.
• On the Department of the Treasury’s Financial Crimes Enforcement Network Web site for Money Services Businesses.
• By calling IRS at (800) 829-3676.

13.   Is there a help line for questions about completing the form?
You can get answers to questions concerning the FBAR form by calling (800) 800-2877, option 2.

14.   Where do account holders file the FBAR?
Send completed forms to:

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

The FBAR is not to be filed with the filer’s Federal tax return.

15.   How does an FBAR filer amend a previously filed FBAR?
FBAR filers can amend a previously filed FBAR by:

• Checking the Amended box in the upper right hand corner of the first page of the form;
• Making the needed additions or correction;
• Stapling it to a copy of the original FBAR; and
• Attaching a statement explaining the changes.

16.   What is the statute of limitations for assessing civil penalties for violations of the FBAR requirements?
Civil penalties can be assessed anytime up to six years after the date of the violation.

17.   How long should account holders retain records of the foreign accounts?
Records of accounts required to be reported on an FBAR must be retained for a period of five years.  Failure to maintain required records may result in civil penalties, criminal penalties, or both.

18.   What happens if an account holder is required to file an FBAR and fails to do so?
Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties, or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.  No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.  Keep copies, for your record, of what you send.

19.   An American citizen, X, gives a person who is a citizen or resident of the U.S. power of attorney to X’s Canadian bank accounts.  X files an FBAR form annually.  Does the power of attorney also need to file an FBAR?
Yes, because the power of attorney has signature or other authority over the accounts and because he is a U.S. person.

20.   A fiduciary who is a U.S. person has control as a trustee for an IRA with a foreign account.   Should an FBAR be filed?
Yes, because the fiduciary is a U.S. person.

21.   Does the term “other authority over a financial account” mean that a person, who has the power to direct how an account is invested, but who cannot make disbursements to the accounts, has to file an FBAR?
No, an FBAR is not required because the person has no power of disposition of money or other property in the account.

22.   Does more than one form need to be filed for a husband and wife owning a joint account?
No, if the names and social security numbers of the joint owners are fully disclosed on the filed FBAR. A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR.  The filer should write (spouse) on line 26 after the last name of the joint spousal owner.  If the only reportable accounts of the filer's spouse are those reported as joint owners, the filer's spouse need not file a separate report.  If the accounts are owned jointly by both spouses, the filer's spouse should also sign the report.  It should be noted that if the filer's spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer's spouse should file a separate report for all accounts including those owned jointly with the other spouse. 

23.   Must a U.S. person file an FBAR on a Eurodollar account in the Cayman Islands?
Yes, the Cayman Islands account is a foreign account.

24.   A N.Y. corporation owns a foreign company that has foreign accounts.  The corporation will file an FBAR for the foreign company’s accounts.  Do the primary owners of the U.S. Company also have to file?
Yes, if any owner directly or indirectly owns more than 50 percent of the total value of the shares of stock, that owner will have to file an FBAR.

25.   A company has over 25 foreign accounts.  What should they enter in Part ll of the FBAR?
If the filer holds a financial interest in more than 25 accounts, check the yes box in item 14 and indicate the number of accounts in the space provided.  Do not complete any further items in Part II or Part III of the report.  Sign the form in item 44/45 and enter the date signed in item 46.  Any person who lists more than 25 accounts in item 14 must provide all the information called for in Part II and Part III when requested by the Department of the Treasury.

26.   A person is a non-resident alien and only visits the United States to manage his personal interests, such as rental property.  Does that person have to file an FBAR?
A person who is not a United States citizen or resident and who visits the United States to manage his personal investments, such as rental property, and conducts no other business, is not considered to be in, and doing business in, the United States for FBAR reporting purposes and does not have to file FBARs.

27.   What are the exceptions to the FBAR filing requirement?
Accounts in U.S. military banking facilities, operated by a United States financial institution to serve U.S. Government installations abroad, are not considered as accounts in a foreign country.  For this reason, these accounts do not have to be reported on an FBAR.

An officer or employee of a bank which is subject to the Supervision of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, or the Federal Deposit Insurance Corporation need not report that he has signature or other authority over a foreign bank, securities or other financial account maintained by the bank, if the officer or employee has NO personal financial interest in the account.

An officer or employee of a domestic corporation whose equity securities are listed on a national securities exchange or which has assets exceeding $10 million and 500 or more shareholders of record, need not file a report concerning the other signature authority over a foreign financial account of the corporation, if he has NO personal financial interest in the account and he has been advised, in writing, by the chief financial officer of the corporation that the corporation has filed a current report, which includes that account.

28.   Does the IRS have an email address to send questions regarding the FBAR?
You can send questions concerning the FBAR to FBARquestions@irs.gov.  The  email system does not accept actual FBAR reports.

Here's the IRS rules on penalties for FBAR:

http://www.irs.gov/irm/part4/irm_04-026-016.html

at Sec. 4.26.16.4

Summary of FBAR penalties from the Internal Revenue Service

1. Negligence: $500. Actual knowledge of reporting requirement is not required to have Negligence.
2. Pattern of Negligence: $50,000
3. Non-Willful: A penalty, not to exceed $10,000, may be imposed on any person who violates or causes any violation of the FBAR filing and recordkeeping requirements.
4. Willful: $100,000 or maximum of 50% of account value.li>
5. The Examiner has great discretion over when to impose a penalty. The penalty is intended to encourage filing. 4.26.16.4.7
6. A warning letter may be issued instead of a penalty in minor cases.
7. Many mitigating factors come into play to avoid or reduce the penalty.
8. We see no automatic late filing penalty…so, if late, get them filed as soon as possible.