New regulations clarify who is considered a "U.S. Person" for purposes of foreign bank account reporting rules (fondly known as the "FBAR" rules). The definition identifies the usual suspects as "U.S. Persons":
Tip: The explanation to the new regulations cautions that entities are U.S. persons for FBAR purposes "regardless of whether an election has been made...to disregard the entity for federal income tax purposes." Though the regulations refer specifically to single member LLCs, this principle can also extend to qualified subchapter S subsidiaries, grantor trusts, and qualified REIT subsidiaries. Taxpayers accustomed to ignoring these entities for income tax purposes will now have to treat them as U.S. persons with an FBAR obligation. Thus, electing to disregard an entity for federal income tax purposes will not exempt that entity from FBAR requirements.