The Financial Crimes Enforcement Network issued new regulations this morning in the Federal Registry for FBARs. The new regulations substantially limit the types of accounts that are considered to be other foreign financial accounts. Suffice to say, poker accounts no longer need to be reported. I have more on my tax blog.

Do be aware that third-party payment accounts, such as Neteller and Moneybookers, do need to be reported. And, of course, anyone with a foreign bank account absolutely needs to report it.

-- Russ Fox

Thanks for keeping us informed, Russ!

For those of us who already sent in our FBAR for 2010, should we take any action?

Not surprising. You say in your blog that poker accounts "no longer" have to be reported.

Did they ever?

No, there's no harm in reporting them, but no longer a need/requirement to do so.

-- Russ Fox

As the rules were interpreted for tax years 2008 - 2009 by FINCEN, they should have been reported. The problem is (well, now 'was') that the Department of the Treasury is both judge and jury of whether you're in compliance or not. The approach of FINCEN has been like aiming a shotgun at a jaywalker. The penalties are so ridiculously large for minor infractions that this was a case where it was far, far better to be safe than sorry.

-- Russ Fox

Good news and thanks as always for the info, Russ.

Very cool! As always, thanks for keeping us all up-to-date.

lol

thanks Russ.

mods update the sticky please.

Thanks for the info... And always keep up the great work you do!

So we no longer need to claim the money won on our federal taxes? Am I reading this correctly?

no youre not

http://en.wikipedia.org/wiki/Departm..._Accounts#FBAR

This is great news! Thanks Russ for posting this as I had not had a chance to read the final rule myself.

Thanks Russ! Not that I ever reached $10K (yay micros) but I always sorta worried about binking a tournament and ending up over $10K and having to fill out one of these.

Thank you Russ, this is a really nice clarification to have