Comparison of Form 8938 and FBAR Requirements

- By : P. 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 each form for which they meet the relevant reporting threshold.      Form 8938, Statement of Specified Foreign Financial Assets FinCEN Form 114, Report of

Difference between Form 8938 and FBAR Requirements

- By : P. 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 8938, which is due with the tax return itself, and the Foreign Bank Account report (FBAR), which is due by June 30 to the U.S. Treasury

IRS attempts to demystify its new Form 8938

- By : P. 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 the specified foreign financial assets that I need to report on Form 8938? If you are required to file Form 8938, you must report your

More Tax Complexity: New Form 8938

- By : P. Patel

In recent years, the IRS and US Treasury have stepped up their efforts toward tracking down delinquent tax payers and enforcing payment of overdue taxes. One of these initiatives has been labeled the “Foreign Account Tax Compliance Act”. FATCA is part of the Hiring Incentives to Restore Employment (HIRE) Act, which was designed to enforce

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

- By : P. Patel

The IRS and US Treasury have stepped up their efforts toward tracking down delinquent tax payers and enforcing payment of overdue taxes. One of these initiatives is the “Foreign Account Tax Compliance Act”. FATCA is part of the Hiring Incentives to Restore Employment (HIRE) Act, which was designed to enforce higher tax compliance among U.S.

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

- By : P. 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 Assets, is a new reporting form, which will be used to report certain foreign financial assets as required as part of the Hiring Incentives to Restore

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

- By : P. Patel

The announcement by the IRS of the opening of the new Offshore Voluntary Disclosure Program (OVDP) on January 9, 2012 came as a surprise to most tax practitioners, especially since the 2011 OVDI just ended on September 9, 2011. However, if one analyzes the number of new developments in international tax compliance over the past

Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets

- By : P. 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 Hiring Incentives to Restore Employment Act (HIRE Act), which was signed into law in 2010 by President Obama. Form 8938 is effective for 2011 and

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

- By : P. Patel

The IRS again reminded taxpayers yesterday about their reporting obligations for foreign assets and income. The reminder again represents the IRS’ targeted enforcement of tax laws for reporting obligations for foreign assets and income. Taxpayers should take notice and become compliant. The official IRS notice is below. IR-2018-87, April 9, 2018 WASHINGTON — The Internal Revenue Service

The Misunderstood Extension of time to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)

- By : P. Patel

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced an automatic six-month extension for taxpayers required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Taxpayers now have until October 16 to submit their FBARs for 2016 without being subject to penalties. There is no specific FBAR extension document or form