![]() We recommend that you review what the IRS says is required for US taxpayers to do when filing Form 8938 and the rules around FBAR reporting and filing. To complete an FBAR form (see FBAR filing instructions), you will need your name, Social Security Number (SSN or ITIN), address, details of all joint account owners, foreign bank names and addresses and the type of accounts held. – Review the different requirements between Form 8938 and FBARĪn FBAR filing requirement is annual if you are within the reporting & filing threshold. – There’s a hefty fine for not filing Form 8938 (up to $50,000) – Not every US ex-pat needs to fill one out The main points to remember about Form 8938 are: When living and working abroad, it is common for Americans to gain different foreign financial assets, such as a foreign pension plan or shares in a foreign company.Īs a US taxpayer, you must report those foreign assets in your annual taxes and filing Form 8938 is a common way to do this. Our UK and US tax specialists team recommend that every ex-pat be aware of FATCA and how it could affect their foreign investments and tax liabilities.Ĭalled a Statement of Specified Foreign Financial Assets, Form 8938 is used by expats to tell the IRS about financial assets held abroad. It requires an expanded list of foreign assets not covered by FBAR. If a US taxpayer has more than a certain amount of foreign assets, Form 8938 is included in their annual Form 1040 filing. One of the main initiatives introduced was the Foreign Account Tax Compliance Act (FATCA) filing requirements.įATCA is part of the Hiring Incentives to Restore Employment (HIRE) Act, designed to enforce higher tax compliance among US taxpayers with foreign accounts and assets.įATCA created Form 8938 in the 1040, an additional foreign account reporting requirement over and above FBAR that must be filed with the US Treasury annually. ![]() You will need to know what and when to file an FBAR. Be sure to learn and understand the FBAR filing instructions as they are needed yearly. American ex-pats have come under increasing scrutiny. In recent years, the IRS has stepped up efforts to track down delinquent taxpayers and enforce the payment of overdue taxes. ![]() What are the basics of Form 8938 vs FBAR reporting threshold filing requirements? The when and the how.
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