Nice new FBAR exemption

The IRS was kind enough to amend FBAR with a new exemption for owners of foreign corporations.

Modified Reporting for United States Persons Residing and Employed Outside of the United States. A United States person who (1) resides outside of the United States, (2) is an officer or employee of an employer who is physically located outside of the United States, and (3) has signature authority over a foreign financial account that is owned or maintained by the individual's employer should only complete Part I and Part IV, Items 34-43 of the FBAR. Part IV, Items 34-43 should only be completed one time with information about the individual's employer.

So if you own a foreign corporation, use it for business or trade, and live abroad, the accounts owned by the company are not reportable via FBAR.

However, it will be reportable via the new form 8938 if you treat your company as a disregard entity for tax purpose.