MFA Comments to Regulators on Application of FBAR Requirements to Private Investment Funds

August 03, 2009

From: MFA, Richard Baker


Neal Wollin, Michael Mundaca, James Freis, Department of the Treasury, Douglas Shulman, IRS
Clarissa C. Potter, J. Richard Harvey, Jr., Christopher B. Sterner, Linda Kroening, Michael DiFronzo, Sara M. Coe, Beth Elfrey, Carol P. Nachman, Samuel Berman, IRS
Jamal El-Hindi, John Harrington, Byron A. Christensen, Department of the Treasury

MFA submitted a letter to Treasury, the IRS and FinCEN on FBAR compliance concerns, requesting that Treasury and the IRS take prompt action to resolve: (1) whether a hedge fund or other private investment fund organized outside of the United States constitutes a “financial account” for FBAR purposes; and (2) if so, a variety of collateral issues arising under FBAR. In addition, in the letter, MFA provided its support of a procedural recommendation made by the Tax Section of the New York State Bar Association for a one-year moratorium on FBAR filings not related to a “traditional financial accounts” (as defined in the letter).