Who must file a Form 8938?
Unmarried individuals residing in the United States are required to file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year.
Is Form 8938 the same as FBAR?
FBAR form is for US persons having an interest in foreign financial accounts. Form 8938 is for specific US persons having an interest in foreign financial assets. Also, they must meet the thresholds mentioned.
What happens if you forget to file Form 8938?
The penalty for failing to file Form 8938 is USD 10,000, with an additional penalty up to $50,000 for continued failure to file after IRS notification. A 40% penalty on any understatement of tax attributable to non-disclosed assets can also be imposed and special statute of limitation rules apply.
Is form 8938 an information return?
Form 1041-N. Form 1120. A reference to an “annual return” or “income tax return” in the instructions includes a reference to any return listed here, whether it is an income tax return or an information return. Do not send a Form 8938 to the IRS unless it is attached to an annual return or an amended return.
Can you file FBAR for previous years?
Generally, a U.S. person with foreign accounts will file 6-years of prior year delinquent FBAR forms. Any further back filing, and it may resurrect an already expired statute of limitations. If the six most recent years are not in compliance, it may leave the taxpayer open to significant fines and penalties as well.
What is 8938 form used for?
Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.
Do I have to file FBAR if I file 8938?
A financial asset that is reported on Form 8938 (FATCA) does not necessarily need to be reported on your FBAR form and vice versa.
Do I have to report foreign property on Form 8938?
You do not have to report that property on Form 8938 or other FATCA forms even if it is a rental property. Under certain circumstances, you may be required to file a Form 3520 to report a distribution from a foreign trust, foreign estate or gift from a foreign person in excess of $100,000 during the year.
What is the purpose of Form 8938?
How do I file 8938 on TurboTax?
To get to the 8938 section in TurboTax (requires Deluxe or higher): Open or continue your return if you’re not already in it. Search for 8938 and select the Jump to link at the top of the search results. On the Foreign Financial Assets screen, select Yes, I have foreign financial assets.
How far back can I file FBAR?
6-years
Generally, a U.S. person with foreign accounts will file 6-years of prior year delinquent FBAR forms. Any further back filing, and it may resurrect an already expired statute of limitations. If the six most recent years are not in compliance, it may leave the taxpayer open to significant fines and penalties as well.
Do I need to file a FBAR or a 8938?
Yet filing the Form 8938 does not relieve an individual of the requirement to file the FBAR. Many individuals will be required to file both the Form 8938 and the FBAR to report substantially the same information. Oddly the reports go to different parts of the government.
Who is required to file Form 8938?
You are a specified person (either a specified individual or a specified domestic entity). A specified individual is: A U.S.
Who is required to file U.S. IRS Form 8938?
Certain domestic corporations, partnerships, and trusts that are considered formed or availed of for the purpose of holding, directly or indirectly, specified foreign financial assets (specified domestic entities) must file Form 8938 if the total value of those assets exceeds $50,000 on the last day of the tax year or $75,000 at any time during the tax year.
Do I have to file Form 8938?
For now, only specified individuals are required to file Form 8938: If you do not have to file an income tax return for the tax year, you do not need to file Form 8938, even if the value of your specified foreign assets is more than the appropriate reporting threshold.