·     U.S. Citizens and residents possessing financial interest, signature, or other authority over any foreign financial accounts, including bank, securities or other types of financial accounts and direct or indirect interest as well as a beneficial interest in a foreign bank or securities account

·       Aggregate value of such accounts exceeded $10,000 at any time during 2006

The deadline for filing the report is different from the filing of the U.S. income tax return - the form must be filed on or before June 30, 2007.  Even though the tax return for the partnership or the individual may not have been filed as of that date, there is no extension of time to file the Form TD F 90-22.1.

If there is more than one foreign account that meets the criteria for filing, then multiple filings of Form TD F 90-22.1 by the same person will be required.

U.S. persons are not required to file Form TD F 90-22.1 with respect to any account maintained with a branch, agency, or other office of a foreign bank or other institution that is located in the US, Guam, Puerto Rico, and the Virgin Islands.

Penalties for not filing this report have increased due to the American Jobs Creation Act of 2004.  Such penalties are as follows:

·       A civil penalty (up to $10,000) may be imposed on any person who violates this reporting requirement (without regard to willfulness). The penalty may be waived if any income from the account was properly reported on the income tax return, and there was reasonable cause for the failure to report

·       A civil penalty, equal to the greater of 50 percent of the amount of the transaction or the value of the account, or a $100,000 maximum in the event of willful behavior

·       An individual who willfully violates this reporting requirement is subject to a criminal penalty—a fine of not more than $250,000 or imprisonment for up to five years (or both); if the violation is part of a pattern of illegal activity, the maximum fine increases to $500,000 and the maximum length of imprisonment increases to 10 years

Please contact your Tax representative at 215-564-1900 if you have any questions.

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