FOREIGN FINANCIAL INSTITUTION ACCOUNTS
Business Meeting Discussion

IRS FORM 8938, STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETS 

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). Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. 


Who Must File

 
Specified individuals and specified domestic entities that have an interest in specified foreign financial assets and meet the reporting threshold.


Reporting Threshold (Total Value of Assets) 


Specified individuals 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.

  • Married individual filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.


Specified individuals living outside the US:

 

  • Unmarried individual (or married filing separately): Total value of assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.

  • Married individual filing jointly: Total value of assets was more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.

 

Specified domestic entities:


Total value of assets was more than $50,000 on the last day of the tax year, or more than $50,000 at any time during the tax year.


When do you have an interest in an account or asset

 
If any income, gains, losses, deductions, credits, gross proceeds, or distributions from holding or disposing of the account or asset are or would be required to be reported, included, or otherwise reflected on your income tax return.

What is Reported.


Maximum value of specified foreign financial assets, which include financial accounts with foreign financial institutions and certain other foreign non-account investment assets.


When Due


Form is attached to your annual return and due on the date of that return, including any applicable extensions.


Penalties

 
Up to $10,000 for failure to disclose and an additional $10,000 for each 30 days of non-filing after IRS notice of a failure to disclose, for a potential maximum penalty of $60,000; criminal penalties may also apply.