What is the filing threshold for Form 8938?

$50,000
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.

Who has to fill out Form 8938?

To get into the nitty gritty of it, if you’re a U.S. taxpayer who lives outside of the U.S. and holds a total combined value of foreign assets worth more than $300,000 at any time during the year (or $200,000 on the last day of the year) you need to report it on Form 8938.

What gets reported 8938?

Form 8938 reporting applies for specified foreign financial assets in which the taxpayer has an interest in taxable years starting after March 18, 2010. For most individual taxpayers, this means they will start filing Form 8938 with their 2011 income tax return.

What are excepted specified foreign financial assets?

§ 1.6038D-3 Specified foreign financial assets. A specified foreign financial asset includes a financial account maintained by a financial institution that is organized under the laws of a U.S. possession. (3) Excepted financial accounts – (i) Accounts maintained by U.S. payors.

What is the penalty for failure to disclose income on Form 8938?

Information return penalties: Where a taxpayer must file a Form 8938, disclosing his or her interest in “specified foreign financial assets,” fails to do so for any tax year, the taxpayer is subject to a penalty of $10,000.

Does foreign real estate need to be reported on Form 8938?

Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.

Do I need to file Form 114 and Form 8938?

The Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Form 8938 and Instructions can be found at About Form 8938.

Do I need to report foreign financial assets?

Whether or not your foreign financial account has produced taxable income, you’ll still need to report it on FBAR. Married Filing Separately – The total value of your foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Do foreign pensions need to be reported on FBAR?

Foreign Pension Plans & FBAR In an nutshell, the Foreign Pension Plans are Reportable on the FBAR. The FBAR is Foreign Bank and Financial Account Form (FinCEN Form 114). It is an electronic form that is filed each year the person has an annual aggregate total in their foreign bank accounts that exceeds $10,000.

Do corporations need to file 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 …

What happens if you don’t report foreign assets?

There are serious consequences if you don’t report your foreign accounts. If you don’t disclose your offshore accounts, you may be caught through an IRS audit and your foreign accounts may be frozen. The IRS may also impose penalties for failure to comply with offshore account disclosures.

What happens if you dont report foreign income?

If the IRS finds that you willfully failed to disclose overseas accounts, you could owe a penalty of 50% of your total balance or $100,000, whichever is greater, for every year you failed to file an FBAR form. But that’s capped at 6 years.

What are the income thresholds for Form 8938?

The Form 8938 thresholds are different for different types of tax filers: Qualified taxpayers living in the US: Unmarried individual (or married filing separately): Total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.

When did the FATCA Form 8938 come out?

Form 8938: The FATCA Form 8938 Reporting Foreign Asset Form for individuals was introduced on the 2011 tax return. The Form 8938 is part of FATCA (Foreign Account Tax Compliance Act), and is used to report Specified Foreign Financial Assets, along with the foreign income generated from the foreign assets.

Who is eligible for H & are Block Form 8938?

U.S. individuals (citizens, residents and certain nonresidents) and certain U.S. corporations, trusts, and partnerships who have an interest in foreign financial assets (as specified by the IRS) and meet the reporting threshold.

What happens if you fail to file Form 8938?

“No penalty will be imposed if you fail to file Form 8938 or to disclose one or more specified foreign financial assets on Form 8938 and the failure is due to reasonable cause and not to willful neglect. You must affirmatively show the facts that support a reasonable cause claim.