Back in April, I noted that the IRS, in a private letter ruling, had certain exemption from the tax code’s excess compensation limits. (No, people, the concept of the government deciding what is excess compensation is nothing new.)
Chuck Rubin, whose tax blog is great, reports that the IRS, in a different part of the code, is still thinking along the same lines:
We previously wrote about how the instructions to Form TD F 90-22-1 (Report of Foreign Bank and Financial Accounts) (commonly referred to as the “FBAR”) were recently revised to include some non-U.S. persons in the reporting net. Likely due to public concerns that requiring non-U.S. persons to report their foreign accounts to the U.S. government would adversely affect foreign investment in the U.S., the IRS is now backpedaling. In a recent announcement, it is indicating that in regard to FBAR forms due on June 30, 2009, the OLD definition of a reporting person will continue to apply – the old definition does not include foreign persons or entities.
Will it stay this way? It’s hard to say with the IRS.