Frequently Asked Form 8938 Questions (2024)

is designed to be used by the Internal Revenue Service for combat international tax evasion and request information about

s.

Certain U.S. individual taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 ($100,000 if filing jointly) must report information about those assets on

, which must be attached to the taxpayer’s annual income tax return.

started in 2011.

requests information about foreign financial assets (like stocks, bonds, life insurance policies, etc.) and accounts, while the

requests information only about foreign financial accounts. The information reporting is duplicative.

Yes, most people have to file both. Married individuals filing jointly and residing in the United States must file

if their foreign financial assets are valued at greater than $100,000 on the last day of the year or greater than $150,000 at any point during the year.

If you are required to file

but do not by the due date, you may be subject to a penalty of $10,000 per year.There are IRS voluntary disclosure programs, like the DIIRSP, to cure the failure to file without penalties.

There is a $10,000 penalty for failing to file

by the due date.

is not an audit trigger. You will not be audited if you follow the rules and report

s. Failure to file may result in an audit.

Yes, if you are required to report foreign financial assets. It is not optional. For example, unmarried individuals residing in the United States are required to file

if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year (filing jointly the limit is $100,000).

Yes, the IRS can check

via FATCA reporting by foreign banks.

Sometimes legal counsel is not necessary to correct

errors. In some cases, legal counsel is strongly recommended. Unsure? Contact us.