FBAR LETTER

Dear Valued Clients:



If you have a foreign bank account, you may have an IRS disclosure filing requirement. The IRS requires all taxpayers to file a separate form if they have bank accounts that have a balance of at least $10,000 at any point during the year. Although the form is strictly a disclosure form, it carries some large penalties for non-filing. The greater of $10,000 or 50% of the assets of the account. There are no taxes associated with filing this form.

Currently the IRS is offering relief in the form of a voluntary disclosure program. The program runs through September 23, 2009. Under the program taxpayers are being allowed to file prior year forms, without being subject to penalties. Therefore any taxpayer who may be impacted by the foreign bank account disclosure requirements should take a look at this issue immediately in order to take advantage of this grace period.

We are happy to review your situation to determine if you may have a filing requirement. We strongly encourage everyone who has any foreign bank accounts to contact us to get caught up with the filing requirements in order to avoid large penalties and IRS scrutiny in the future.

Please let us know if you have any questions or concerns about foreign bank accounts and the filing requirements.

Sincerely,



Your Hersman Serles Almond PLLC Team