I'm a UK citizen who was granted a US "green card" in July 2009. However I did not move to USA until 2010.

Problem:
I did not file FBAR for 2009.
My CPA filed a 1040, 1116 and 2555-EZ He told me I did not have to bother itemizing interest on my cash savings from the UK. They were therefore not itemized at all on my tax return. He did not tell me about FBAR and have only recently found about this through researching for my 2010 tax return.

After reading the UK-USA tax treaty I would like to know if in fact I needed to file a US tax return for 2009, or if I could have filed as a non-resident? Although I passed the "green card " residency test in 2009, reading the small print from publication 519...
Footnote 2 from figure 1-A page 5: "In some circumstances you may still be considered a nonresident alien under an income tax treaty between the U.S. and your country"


ARTICLE 4 of UK-USA tax treaty - Residence. paragraph 2.
An individual who is a United States citizen or an alien admitted to the United States
For permanent residence (a “green card” holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United States and if that individual is not a resident of a State other than the United Kingdom for the purposes of a double taxation convention between that State and the United Kingdom.
In 2009 I visited USA for probably less then 20 days so I am unlikely to meet the "substantial presence" requirement as stated above.

This is potentially a great relief as it could mean that I'm not classed as a resident and therefore I would fall under the suspension for 2009 www.irs.gov/pub/irs-drop/a-10-16.pdf stating that " persons who were not United States citizens,
United States residents, or domestic entities" do not have to file FBAR for 2009.

I'd appreciate any help from anyone with an advanced knowledge of the tax code, treaties and filing requirements for unusual situations like mine. I'm very worried about FBAR :(

Your are resident since July 2009. For 2009, you are dual status-- non resident up to July 2009 and resident after July 2009.
For 2010, you are resident.
You should also file FBAR for 2009 and 2010. Under 2011 Offshore Voluntary Disclosure Initiative you can file up to August 31, 2011. U.S. TAX NEWS (http://newsustax.blogspot.com/)

Hello Mukata thank you for your reply. In your answer have you considered the wording of the UK-USA tax treaty? It is my understanding that the Treaty over-rides the tax code. The treaty suggests that even though I passed the green card test under IRS rules, under Treaty rules I am a non-resident for tax purposes because I did not satisfy the substantial presence, permanent home or habitual abode test.

I am in an unusual situation. Most people who get a green card move to the USA straight away. I delayed my move until the following year .

Please review the tax treaty as quoted. I'd appreciate you explaining how I have misinterpreted the wording. Thanks.

Yes, according to the tax treaty article in your post, you do not file 2009 tax return or FBAR.
Only your days of presence in US count toward substantial presence test. For 2010 you are nonresident if you did not complete SPT or dual status if you completed SPT.