On February 26, 2010, a proposed rule was published in the Federal Register regarding reports of foreign financial accounts and the form used to file these reports (called a Foreign Bank and Financial Account Reporting or "FBAR" form). The proposed rule would amend the Bank Secrecy Act regulations clarifying which "persons" will be required to file FBAR forms and which foreign financial accounts will be reportable. The proposed rule would also exempt certain persons with signature or other authority over foreign financial accounts from filing reports and include provisions preventing United States persons from avoiding this reporting requirement.

The Department of Treasury is seeking comments on the proposed rule which must be received by April 27, 2010.

Announcement 2010-16 (temporarily suspending the requirement to file the FBAR for 2009 and earlier calendar years for "persons" who are not U.S. citizens, residents or domestic entities) and Notice 2010-23 (providing FBAR filing relief for certain persons with signature authority and persons who own commingled funds) were also released on February 26.

We plan to issue a more detailed discussion of FBAR, the proposed rule, Announcement 2010-16, Notice 2010-23, and their effects on governmental plans later this week. In that analysis, we will focus in particular on the definitional aspects of the proposed regulations. In the meantime, if you have any questions, please contact Mary Beth Braitman, Terry A.M. Mumford, Katrina M. Clingerman or your Ice Miller LLP employee benefits attorney.