Form 8938 - Statement of Specified Foreign Assets

 

Who must file Form 8938 - Statement of Specified Foreign Assets?

Form 8938 must be filed by “specified individuals” with “specified foreign financial assets.” A specified individual is a U.S. citizen; a resident alien of the U.S. for any part of the tax year; a nonresident alien who makes an election to be treated as resident alien for purposes of filing a joint income tax return; or a nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. 

The IRS also reported that in the future it intends to require specified domestic entities to file Form 8938 if the entity is formed or availed of to hold specified foreign financial assets, and the value of those assets exceeds the appropriate reporting threshold. The IRS has issued proposed regulations which provide that specified domestic entities include certain domestic corporations, domestic partnerships, and trusts.  At this time, there is no Form 8938 filing requirement for specified domestic entities. More guidance about specified domestic entities is being developed by the IRS.

Reporting Obligations by U.S. Individuals and Entities:

The IRS has developed monetary thresholds for reporting.  The thresholds vary depending on the taxpayer’s status.

  Value of Foreign Financial Assets at End of Year Value of Foreign Financial Assets ANY time in the tax year
While Living in the United States:    
a) Single $  50,000 $  75,000
b) Married Filing Jointly (MFJ) $100,000 $150,000
c) Married Filing Separately (MFS) $  50,000 $  75,000
     
While Living Abroad:    
d) Married Filing Jointly (MFJ) $400,000 $600,000
e) Single or MFS $200,000 $300,000