Fewer Taxpayers Required to File US Treasury Reporting Form

Volume No. 09-14

“The IRS announced that it is suspending the expanded definition of “a United States Person”..”

As was previously reported in Tax Tip 09-01, the IRS expanded the types of filers that are required to file a United States Treasury Form TD F 90-22.1 (FBAR) effective January 1, 2009. Prior to this revision, the term “United States person” was defined to mean a US citizen or resident of the United States, a US domestic partnership, a US domestic corporation or a US domestic estate or trust.

The expanded definition meant that, for 2008 (filing due date June 30, 2009), in addition to US citizens or residents, the form was to be filed by self-employed nonresidents engaged in US business, and foreign corporations with a US presence that have US employees with relevant signing authority. The expanded base could also apply to non-US resident partners of any partnership engaged in a US business.” Whether a person is doing business in the United States is a factual test based on each case’s unique “facts and circumstances.”

On June 5, 2009 the Internal Revenue Service (“IRS”) announced that it is suspending the expanded definition of “a United States Person” until they can issue further guidance. The IRS has received a number of questions and comments from the public concerning the new filing requirements and requires time to review the issues.

Therefore the IRS has now stated that, for the purpose of the 2008 filings, the prior definition of “United States person” may be relied on. This definition of United States person covers a U.S. citizen or resident of the United States, a US domestic partnership, a US domestic corporation or a US domestic estate or trust (subject to an aggregate USD 10,000 threshold).

The IRS expects to issue additional guidance with respect to FBARs due in subsequent years. The filing deadline for 2008 FBARs is June 30, 2009. There are no extensions.


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The material provided in Tax Tip of the Week is believed to be accurate and reliable as of the date it is written. Tax laws are complex and are subject to frequent change. Professional advice should always be sought before implementing any tax planning arrangements. Neither the Tax Specialist Group nor any member firm can accept any liability for the tax consequences that may result from acting based on the contents hereof.