Tuesday, 13 March 2012

Who must file new Form 8938?

For tax years beginning after March 18, 2010, certain individuals must file new Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds the reporting threshold amount.

Who Must File?

Unless an exception applies, you must file Form 8938 if you are a specified person that has an interest in specified foreign financial assets and the value of those assets is more than the applicable reporting threshold.


If you do not have to file an income tax return for the tax year, you do not have to file Form 8938, even if the value of your specified foreign financial assets is more than the appropriate reporting threshold.

Specified individual

You are a specified individual if you are one of the following:
1. A U.S. citizen
2. A resident alien of the United States for any part of the tax year
3. A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return

Specified foreign financial assets

Generally include the following assets:
1. Any financial account maintained by a foreign financial institution.
2. To the extent held for investment and not held in a financial account, any stock or securities issued by someone that is not a U.S. person, any interest in a foreign entity, and any financial instrument or contract with an issuer or counterparty that is not a U.S. person.

Reporting threshold: 

If the total value of your specified financial assets is more than the following:

Taxpayer living in United States
Taxpayer living abroad
On the last day of the tax year
Anytime during the tax year
On the last day of the tax year
Anytime during the tax year
Married filing jointly$100,000$150,000$400,000$600,000
Married filing separately$50,000$75,000$200,000$300,000

Form 8938 does not relieve you of the requirement to file FBAR form TD F 90-22.1

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