Instructions for IRS Form 8938 Statement of Specified Foreign Financial Assets

IRS Form 8938 Statement of Specified Foreign Financial Assets

This document contains official instructions for IRS Form 8938 , Statement of Specified Foreign Financial Assets - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8938 is available for download through this link.

FAQ

Q: What is IRS Form 8938?
A: IRS Form 8938 is a statement used to report specified foreign financial assets.

Q: Who needs to file IRS Form 8938?
A: US taxpayers, including citizens, resident aliens, and certain non-resident aliens, may need to file Form 8938 if they have specified foreign financial assets that exceed certain thresholds.

Q: What are specified foreign financial assets?
A: Specified foreign financial assets include foreign bank accounts, foreign stocks, and securities, foreign partnership interests, and certain other foreign financial accounts or assets.

Q: What are the filing thresholds for IRS Form 8938?
A: The filing thresholds vary depending on the taxpayer's filing status and whether they live in the United States or abroad. In general, the thresholds range from $50,000 to $600,000.

Q: What is the purpose of IRS Form 8938?
A: The purpose of Form 8938 is to provide information to the IRS about a taxpayer's specified foreign financial assets and help prevent tax evasion related to offshore accounts and assets.

Q: When is the deadline for filing IRS Form 8938?
A: Form 8938 is generally filed with the taxpayer's annual income tax return. The deadline for filing is usually April 15th, unless an extension is granted.

Q: What are the penalties for not filing IRS Form 8938?
A: Failure to file Form 8938 or reporting incorrect information can result in significant penalties, including monetary fines and criminal charges.

Q: Is Form 8938 the same as FBAR?
A: No, IRS Form 8938 and the Report of Foreign Bank and Financial Accounts (FBAR) are separate forms, although they may require reporting of similar foreign financial assets.

Q: Do I need to report assets on Form 8938 if I already reported them on another tax form?
A: Yes, if you are required to file Form 8938, you still need to report the specified foreign financial assets on that form, even if they have already been reported on another tax form.