On March 10, 2016, the Financial Crimes Enforcement Network of the Department of the Treasury (FinCEN) published proposed regulations on Reports of Foreign Bank and Financial Accounts (FBAR). If adopted, the proposed rules would make significant changes to the current foreign account reporting requirements.
In unwelcome news for many taxpayers, the regulations would require that detailed account information be provided on each foreign account for which an FBAR is required, regardless of how many foreign financial accounts the taxpayer must report. Currently, U.S. persons with a financial interest in or signature authority over 25 or more foreign financial accounts need only provide limited account information for each account. FinCEN explained that the rule change was motivated by an information gap caused by the relaxed reporting rule:
the provisions limiting information reported […]