Form 8938, Statement of Specified Foreign Financial Assets

Form 8938, Statement of Specified Foreign Financial Assets, is an IRS tax form required for certain U.S. taxpayers with foreign financial assets. Key points include:

1. Part of the Foreign Account Tax Compliance Act (FATCA)

2. Required if foreign financial assets exceed specific thresholds

3. Reports various foreign assets, including:

   – Bank accounts

   – Investment accounts

   – Foreign stocks and securities

   – Foreign entity interests

4. Filed with annual income tax return

5. Separate from FBAR (FinCEN Form 114) requirements

6. Penalties for non-compliance can be severe

This form aims to combat tax evasion by ensuring transparency in foreign asset holdings. Thresholds for filing vary based on residency and marital status. It’s crucial to accurately report all qualifying assets to avoid potential penalties. While similar to FBAR, Form 8938 has different reporting thresholds and is filed directly with your tax return. Consult a tax professional to determine if you need to file and for assistance in completing the form correctly.