| This notice applies in part to FBAR reporting for a person with an interest in foreign commingled funds. On page 2 of the notice, they refer to where the FBAR instructions say that foreign accounts include accounts where the assets are held in commingled accounts. The notice refers to a commingled account being where an individual holds an equity interest in a fund - including mutual funds.
Am I understanding that if an individual invests $10,001 in a mutual fund that invests in foreign stocks, that person is subject to this reporting requirement and the IRS wants all of the prior years' disclosures (back to the beginning of time?) filed by 6/30/2010? The only good news seems to be that these investments are considered a commingled fund and therefore eligible for the extension to 6/30/2010 provided by this notice.
I hope that I am misunderstanding this notice and that this filing is not required for investing in mutual funds. If I am reading it correctly, it will ensnare almost all of my clients. I can only hope that public comment will cause the IRS to change its position.
Thank you for any comments.
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