IRS attempts to demystify its new Form 8938

- By : Parag Patel

The IRS has finally attempted to demystify its new Form 8938. Below are some Form 8938 FAQs: Basic Questions and Answers on Form 8938       1. What are…

More Tax Complexity: New Form 8938

- By : Parag Patel

…“Do I need to file Form 8938, ‘Statement of Specified Foreign Financial Assets?’” Some Other Considerations: Form 8938 is due at the time of your normal tax filing including extensions….

IRS Form 8938 and the Offshore Voluntary Disclosure Program (OVDP)

- By : Parag Patel

…on Foreign Asset Disclosure The main reason for Form 8938′s potentially large impact on 2012 OVDP participation lies in the nature of Form 8938. Form 8938 is and will be…

New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion

- By : Parag Patel

As anticipated, IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion among taxpayers attempting to complete these Forms for filing. Form 8938, Statement of Specified Foreign Financial…

Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets

- By : Parag Patel

Form 8938, Statement of Specified Foreign Financial Assets, is a new reporting form. Form 8938 will be used to report certain foreign financial assets as required as part of the…

FBAR compared to Form 8938: Differences, Which to File, When to File, etc.

- By : Parag Patel

…thresholds of each form and determine if they should file Form 8938 or FinCEN Form 114, or both. Form 8938 and Instructions can be found at About Form 8938. FinCen…

Difference between Form 8938 and FBAR Requirements

- By : Parag Patel

Comparison of Form 8938 and FBAR Requirements     Many holders of foreign financial assets must file two disclosure forms this year or else risk draconian penalties. They are Form…

Comparison of Form 8938 and FBAR Requirements

- By : Parag Patel

The new 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). Individuals must file…

Form 8938, FATCA, FBAR and penalties for all (including bankers)

- By : Parag Patel

…assets. FATCA created Form 8938, an additional foreign account reporting requirement over and above the Report of Foreign Bank and Financial Accounts (FBAR) or Form TD F 90-22.1 that needs…

New Form Updates for Foreign Accounts

- By : Parag Patel

…extension granted  Form 8938 (Statement of Specified Foreign Financial Assets) – specified domestic entities now required to file Form 8938  Form 5472 (Information Return of a 25% Foreign-Owned…

New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer

- By : Parag Patel

…5472, 8938, 926, and 8621) with respect to the foreign financial asset, and (4) such failures resulted from non-willful conduct. Non-willful conduct is conduct that is due to negligence, inadvertence,…

ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…should have been reported on a Foreign Bank Account Report (FBAR) with FinCEN or a Form 8938 filed with a tax return. Like the 2014 OVDP asset-based   penalty, this…

IRS Releases New IRS 2022 FBAR Fact Sheet

- By : Parag Patel

…U.S. taxpayers must also file Form 8938, Statement of Specified Foreign Financial Assets. Accounts reported on Form 8938 are ones they often need to report on the FBAR, too. Unlike the…

IRS reminds those with foreign assets about U.S. tax obligations

- By : Parag Patel

…Do I need to file Form 8938, “Statement of Specified Foreign Financial Assets”? and Form 8938 instructions. Report in U.S. dollars Any income received or deductible expenses paid in foreign…

Internal Revenue Service again issues annual reminder to US persons to report foreign accounts and foreign income

- By : Parag Patel

…imprisonment. That second regime requires completion of IRS Form 8938 with your tax return in each year that the sum of your highest balances/values exceeds $50,000 at any point during…

2018 ABA COMMENTS ON THE OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…formed outside of the United States. We recommend that the Service issue guidance addressing whether an FBAR or Form 8938 (Statement of Specified Foreign Financial Assets) needs to be filed…

Checklist of tax forms for taxpayers with foreign assets

- By : Parag Patel

This year, there is at least one new tax form for US taxpayers to be aware of: Form 8938: Statement of Foreign Financial Accounts. Since there are a number of…

New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures

- By : Parag Patel

8938, which may be found at Instructions for Form 8938. Non-residency requirement applicable to individuals who are U.S. citizens or lawful permanent residents (i.e., “green card holders”): Individual U.S. citizens…

Beware: IRS Reminds Taxpayers of FBAR Deadline

- By : Parag Patel

…even relatively small amounts, to check if they have a filing requirement. Separately, certain taxpayers living abroad may also have to file the FATCA-related Form 8938 with their tax returns…

Beware of FATCA Letters

- By : Parag Patel

…of any bank account. Filing FBAR and Form 8938 If accountholder receiving the FATCA letter has not already cleaned up their accounts and properly reported any foreign accounts to the…

Do You Have to Pay US Taxes on Foreign Inheritance?

- By : Parag Patel

…These reporting requirements include, but are not limited to, the timely filling of a FinCEN Report 114 (FBAR) and IRS Form 8938 (Statement of Specified Foreign Financial Assets) which merely…

US Entities with foreign assets have more information reporting

- By : Parag Patel

…certain domestic US taxpayers to make annual reports to the IRS on their ‘specified foreign financial assets’. These reports, to be submitted on Form 8938, would be mandatory if the…

Are You Ready For New FATCA Enforcement in 2020?

- By : Parag Patel

…threshold must report those assets on Form 8938, Statement of Specified Foreign Financial Assets, which must be filed annually with the IRS as part of their annual tax return. It’s…

Finally: IRS Reminds Those with Foreign Assets of U.S. Tax Obligations

- By : Parag Patel

…attach Schedule B to their tax return. Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets. Part III of…

Beware of U.S. tax consequences to a foreign trust with a U.S. beneficiary

- By : Parag Patel

…above. Items reported on Form 3520, described above, do not have to be reported on Form 8938, but Part IV of Form 8938 must be completed to indicate the Form…

US Reporting of Foreign Retirement Accounts

- By : Parag Patel

Many clients contact our office regarding the failure to report their foreign retirement account. Such accounts need to be fully reported on an FinCen 114 (FBAR) and IRS Form 8938….

Pandora’s Box Has Opened: Pandora Papers

- By : Parag Patel

…during a calendar year must file FBARs. Generally, U.S. persons must also report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds….

Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A

- By : Parag Patel

8938, Statement of Specified Foreign Financial Assets, and report the income on Form 1040 Schedule B from these plans. No Form 3520 or 3520-A Reporting for Certain Tax-Favored Foreign Trusts…

Common Issues for US-India Tax Reporting

- By : Parag Patel

…signatory authority on, and more. Learn more about FBARs here. FATCA Reporting & Form 8938: Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 need…

New Leak of Offshore Accountholders Highlights the Need to Clean Up

- By : Parag Patel

…total assets exceed generally $100,000 (there are many other applicable limits) on another Form 8938. The Form 8938 is filed with the normal income tax return filing. Beware: Punitive penalties…