On Dec. 12, the IRS released final regulations under Section 6038D (T.D. 9706) relating to the provisions of the Hiring Incentives to Restore Employment (HIRE) Act that require specified foreign financial assets to be reported to the IRS for taxable years beginning after March 18, 2010.
The final regulations affect individuals required to file Form 1040 or Form 1040-EZ and certain individuals required to file Form 1040-NR or Form 1040NR-EZ.
The final regulations include guidance and clarifications regarding individuals required to report, applicable reporting thresholds, interests in specified foreign financial assets and jointly owned assets. The final regulations further address the definition of financial accounts, other specified foreign financial assets and interests in foreign trusts or estates, and discuss valuation guidelines. The final regulations do not include final rules for reporting of interests in specified domestic entities.