Tax Notes has published an article by Lee. A Sheppard, tax analyst. The article dicusses the IRS's stance and actions regarding FBAR (foreign bank account report) regulations for trust funds. Currently, there is some confusion over in what cases an FBAR must be filled, and who most file the FBAR. Sheppard first comments that wealthy people typically have complicated financial issues and hence have very convulted estate planning. Consequently, the IRS has had difficulty regulating foreign trust funds due to confusion over benficiary status and over who has control over said accounts. In the face of surreptitious tax havens and other forms of offshore evasion, certain members of Congress are trying to further define FBAR regulations in an attempt to maintain a better handle on foreign trust funds. Sheppard himself advocates the simple method of an all-encompassing FBAR, one that would be filled on behalf of all those associated with the foreign trust.
See Lee A. Sheppard, "News Analysis: FBAR Filing for Trusts," 2 2009 TNT 156-2, August 13, 2009.
Posted by Raj Chudgar, Associate Editor, Wealth Strategies Journal
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