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Penalties for the failure to file FATCA Form 8938 can be severe. To request an extension for filing Form 1040, use Form 4868 to apply for 6 more months (4 if out of the country and a U.S. citizen or resident). Filing Form 8938 does not exempt you from the requirement to file Form FinCEN 114, the Report of Foreign Bank and Financial Accounts . If you directly hold shares of a U.S. mutual fund you do not need to report the mutual fund or the holdings of the mutual fund. Any interest in a foreign-issued insurance contract or annuity with a cash-surrender value.
Talk directly to an experienced tax lawyer to quickly assess your situation. To do anything else is simply delaying the inevitable confrontation, and wasting your time and mental bandwidth. Instead, we mention them here to aid the layman in understanding that it is possible to obtain a no-penalty outcome for delinquent or incorrect/incomplete Form 8938 filing. In summary, Form 8938 abatement or Form 8938 amnesty are not truly correct terms to describe the actual law .
You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year. There are some exceptions to the requirement that you file Form 8938. For example, if you do not have to file a U.S. income tax return for the year, then you do not have to file Form 8938, regardless of the value of your specified foreign financial assets.
Taxpayers of the United States of America use Form 8938 to fulfil the FATCA obligations. For example, all foreign financial accounts that generate dividends, interest, withdrawals and other proceeds must be reported on Form 8938.
Another monetary component to this penalty is the application of 40% surcharge. This addition relates to the underpayment of taxes and unreported foreign financial assets and criminal charges. If you intentionally did not file form 8938, or you’ve been filing it incorrectly, the IRS can prosecute you against criminal offense. In case you are a US resident, single or married but filing separate returns, you will be required to file form 8938 if your foreign financial assets are $50,000 at year-end or $75,000 or more at any time during that fiscal year. You need to attach form 8938 to your form 1040 and file it along with it.
In working with a Form 8938 tax expert, all options are on the table, and your discussions with tax attorney Andrew L. Jones – who will be your direct point of contact – are protected by the robust attorney-client privilege. Rather than recite, at great length, the technical triggers to each of those six Form 8938 Parts, we recommend consulting with a Form 8938 tax attorney if you have any involvement with anything of value outside the United States. Call for a free consultation with Form 8938 tax attorney Andrew L. Jones. Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits.
But relax, we live for this stuff, and your H&R Block Tax Advisor will know exactly what to do with your specific situation. While similar, Form 8938 is different than an FBAR, and you may have to file both. See the chart below to learn the main differences, or dive a little deeper with the IRS.
However, if you receive a distribution from a foreign trust or foreign estate, you are considered to have knowledge of your interest in the trust or estate. A domestic trust described in section 7701 that has one or more specified persons as a current beneficiary.
It also includes a domestic trust if one or more of the trust’s current beneficiaries is a U.S. citizen or resident alien and the above asset value thresholds are surpassed. “Do I need to file Form 8938, ‘Statement of Specified Foreign Financial Assets’?” Accessed June 18, 2020. The IRS provides a chart with a detailed comparison of Form 8938 and FBAR requirements.
I hired Kunal to assist me with a SDOP application after talking to a few other tax attorneys. You will definitely find an ethical lawyer in Kunal and I wish him the best for the future. I would highly recommend his services and will definitely use his services again. You must convert the maximum account value for each account into United States dollars using the Treasury year-end exchange rate.
It requires the reporting of foreign financial assets to the IRS, along with the income generated from the assets. Unlike other international information reporting returns, FATCA Form – http://waldseer-fasnachtswiki.de/index.php?title=What_Is_Fatca the Form 8938 is due to be filed at the same time a U.S. taxpayer’s Tax Return is due.
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