Chief Counsel email on whether a foreign corporation that elected under § 953(d) to be a domestic life insurer must file an FBAR

Plain-English summary

This is a short internal email of Chief Counsel Advice about the Report of Foreign Bank and Financial Accounts (FBAR), which certain U.S. persons must file to disclose foreign financial accounts. The examiner asked whether a corporation under examination has to file one. The attorney explains that corporations can have an FBAR filing requirement, and that entities created, organized, or formed under U.S. law are subject to it (citing 31 CFR 1010.350(b) and the Internal Revenue Manual). The wrinkle here is that the corporation was organized outside the United States but made an election under IRC § 953(d) to be treated as a domestic life insurance company. So the answer turns on what effect that § 953(d) election has on the entity's status for FBAR purposes. The attorney's actual analysis and conclusion on that point were redacted from the public release, so the released text raises the issue without resolving it.

Ruling snapshot

• Question: Does a foreign-organized corporation that elected under § 953(d) to be treated as a domestic life insurance company have an FBAR filing requirement?
• Outcome: Advice (informal Chief Counsel email; the analysis resolving the question is redacted)
• Key authorities: IRC § 953(d); 31 CFR 1010.350(b); IRM 4.26.16.2.1

Full text (IRS public release)

 ID:        CCA_2022031013015912                            [Third Party Communication:

 UILC:      9999.99-01                                      Date of Communication: Month DD, YYYY]

Number: 202225008
Release Date: 6/24/2022
From: ------------------
Sent: Thursday, March 10, 2022 1:01:59 PM
To: ---------------------
Cc: ----------------------
Bcc:
Subject: RE: FBAR question


Hi ---------,

It turns out that corporations do have a FBAR filing requirement. Entities created,
organized, or formed under the laws of the United States have an FBAR filing
requirement. See 31 CFR 1010.350(b); IRM 4.26.16.2.1.

You've indicated that the corporation under exam was organized in the ----------------------
----------, but that it made an election under § 953(d) to be treated as a domestic life
insurance company. So, the question of whether the corporation has a FBAR filing
requirement appears to turn on the effect of that election.

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Thanks.


Taylor H. Huse
Attorney
CC:PA:02
Direct: (202) 317-5428