In the global mobility arena, both inbound and outbound employees as well as US employees who do not travel abroad are faced with addressing two annual foreign asset reporting regimes this year. The filing deadline for the 2011 US Treasury Department Form 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), is the end of this month -- June 30, 2012. However, many taxpayers may have already reported foreign bank accounts and certain other assets on Form 8938, Statement of Specified Foreign Financial Assets, if their individual income tax returns for 2011 have already been filed. Do these individuals still need to file the FBAR?
The answer is likely 'yes' even though the information reported on both forms may be similar. As a result, both regimes may create compliance challenges for employees, their employers, and tax practitioners alike due to the need to analyze the similarities and differences, while following each regime's separate rules and requirements.