Foreign Financial Assets
Under recently enacted Code §6038D(a), any individual who during the taxable year holds an interest in any specified foreign financial asset is required to attach to his or her income tax return for the taxable year certain required information with respect to each specified foreign financial asset if the aggregate value of all of the individual’s specified foreign financial assets exceeds $50,000. Code §6038D applies to taxable years beginning after March 18, 2010. The I.R.S. intends to, but has not yet, released Form 8938, Statement of Specified Foreign Financial Assets. Notice 2011-55 suspends the requirement to attach Form 8938 to income tax returns that are filed before the release of Form 8938.
Under recently enacted Code §1298(f), U.S. persons who are shareholders of a passive foreign investment company (P.F.I.C.) are required to file an annual report with the I.R.S. Prior to the enactment of Code §1298(f), P.F.I.C. shareholders were required to file Form 8621 in certain circumstances (but not annually). Code §1298(f) was effective on March 18, 2010. However, Notice 2010-34 provided that shareholders of a P.F.I.C. that were not otherwise required to file Form 8621 annually prior to the enactment of Code §1298(f) would not be required to file an annual report as a result of the addition of Code §1298(f) for taxable years beginning before March 18, 2010. Pending the release of a revised Form 8621, Notice 2011-55 further suspends the Code §1298(f) reporting requirement for taxable years beginning on or after March 18, 2010, for P.F.I.C. shareholders that are not otherwise required to file Form 8621 as provided in the current instructions to Form 8621. P.F.I.C. shareholders with Form 8621 reporting obligations as provided in the current instructions to Form 8621 must continue to file the current Form 8621 with an income tax or information return filed prior to the release of a revised Form 8621.
This notice does not relieve a person of the responsibility to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, (“FBAR”) if the FBAR is otherwise required to be filed.