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H1 people are not required to file form TD F 90-22.1

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Posted by formybrother (38)   21 Apr 2010#1
See the link for news from IRS as of Feb 26, 2010 explaining the US Person term.

www.webcpa.com/.../IRS-Suspends-FBAR-Filing-for-Non-Citizens-for-Now-53401-1.html -

IRS Suspends FBAR Filing for Non-Citizens (for Now)
Washington, D.C.
(February 26, 2010)

By WebCPA Staff

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The Internal Revenue Service has temporarily suspended the requirement to file a Report of Foreign Bank and Financial Accounts for the 2009 and earlier calendar years, for people who are not U.S. citizens, residents or domestic entities.

Announcement 2010-16 temporarily suspends the requirement to file Form TD F 90-22.1, also known as the FBAR, as the IRS tries to clear up the definition of “United States person.” In addition, the IRS issued Notice 2010-23, which provides FBAR filing relief for some persons with signature authority and who own commingled funds.

In October 2008, the IRS published a revised FBAR form, together with accompanying instructions, changing the definition of “United States person.” The IRS received numerous questions and comments from the public concerning the changed definition. In response, and to reduce the burden on the public, the IRS issued Announcement 2009-51, 2009-25 I.R.B. 1105, which directed people to refer to the definition of “United States person” in the July 2000 version of the FBAR instructions to determine if they had a filing obligation.

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This effectively suspended the filing of FBARs due on June 30, 2009, by people who were not U.S. citizens, residents, or domestic entities. Announcement 2009-51 stated that additional FBAR guidance would be issued for subsequent filing years and invited public comments.

After receiving a significant number of public comments, the Treasury Department published proposed FBAR regulations to provide taxpayers with guidance on who is required to file FBARs due on June 30, 2010, and how to answer FBAR-related 2009 federal income tax return questions.

The IRS and the Treasury Department now believe it is appropriate to provide the following administrative relief: The requirement to file an FBAR due on June 30, 2010, is suspended for persons who are not U.S. citizens, U.S. residents, or domestic entities. Additionally, all persons may rely on the definition of “United States person” found in the July 2000 version of the FBAR instructions to determine if they have an FBAR filing obligation for the 2009 and earlier calendar years. The definition of “United States person” there is: (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.

This substitution of the definition of “United States person” applies only with respect to FBARs for the 2009 calendar year and to earlier calendar years.

All other requirements of the 2008 version of the FBAR form and instructions, as modified by Notice 2010-23, remain in effect until changed by subsequent guidance issued by the Treasury Department, including the IRS
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Posted by formybrother (38)   21 Apr 2010#2
to :

No. specifically for this form, US Resident will be only U.S. Citizens and Greencard holders. See the entire report. I am pasting here the para..

"The IRS and the Treasury Department now believe it is appropriate to provide the following administrative relief: The requirement to file an FBAR due on June 30, 2010, is suspended for persons who are not U.S. citizens, U.S. residents, or domestic entities. Additionally, all persons may rely on the definition of “United States person” found in the July 2000 version of the FBAR instructions to determine if they have an FBAR filing obligation for the 2009 and earlier calendar years. The definition of “United States person” there is: (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust. "
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Posted by vmkc (268)   21 Apr 2010#3

(1) a citizen or resident of the United States

to formybrother:



so you mean resident means green card holder?
i don't think so,Here resident means who are living in this country(USA) correct me if i am wrong?

We are been called as NRI's Non-Resident-Indians in India
means you are not a resident of India and also according to your statement we are not resident of United States
then who are we? and where we are considered as Residents?
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Posted by formybrother (38)   21 Apr 2010#4
to vmkc:

I think this was the whole purpose of IRS to issue this clarification. As usual, there clarification confuse everyone. Surely, for tax purpose, US Resident is different than US Resident in immigration terms, which is Greencard holder. But What I believe, for this code, they issued this on feb 26 to specifically includes only us citizens and gc holders. And that is why it says that this definition will apply only for year 2009 and earlier. I will research more and like you also to google and findout more.

Thanks to point out.
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Posted by willcrack (651)   21 Apr 2010#5
to formybrother:

Incorrect!

It still does not give relief to US Residents (All federal government references to GC holders is always/legal/lawful permanent residents).

US Residents does not mean Permanent residents but US resident aliens per IRS definition. Thus if you pass the substantial presence test on H1-B (http://www.irs.gov/businesses/small/internation...), you have to file the FBAR even for 2009.

The relief is not applicable to those on H1-B who pass the substantial presence test.

Is that crystal clear ?
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Posted by sangiano (3135)   22 Apr 2010#6
to willcrack:

I totally agree with you.

The only change was from :

"The term "United States person" means a citizen or resident of the United States, or a person in and doing business in the United States."

back to

"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."

In this context, the term "Resident" refers to the IRS definition of passing the "Green Card Test" or "Substantial Presence Test" shown in your link.

It should not be confused with the Immigration term of Legal/Lawful Permanent Resident.

Any one passing the IRS tests will still have to file FBAR if they meet the requirements, even if they are on a Non Immigrant Visa (apart from the stated exceptions).

I do agree it is confusing and it is not confined to the US. The same problem exists with UK Immigration and HMRC (the IRS equivalent).


OT: Looking forward to watching the second IPL semi-final in 15 minutes. I hope it is closer than yesterday's match, although the last five overs of the Mumbai innings were pretty good watching.
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