Any United States person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year.

The deadline for filing Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1, for calendar 2009 is June 30th. There is no extension of time to file Form TD F 90-22.1 and the form must be received by the treasury on or before the June 30th due date.

Penalties can be severe. Persons who are required to file Form TD F 90-22.1 and who do not do so by June 30th are subject to a penalty. For a willful violation, the penalty can be as high as the greater of $100,000 or 50% of the amount in the foreign account. For a nonwillful violation that is not corrected and for which there is no reasonable cause, the penalty can be as high as $10,000.

If you have any concerns whether you need to comply with the Foreign Bank and Financial Accounting reporting requirements, please feel free to contact us.

Very truly yours,