2012-2025 Form

What is the 8938 Form

The 8938 Form, officially known as the Statement of Specified Foreign Financial Assets, is a tax form required by the Internal Revenue Service (IRS) for certain U.S. taxpayers. This form is used to report specified foreign financial assets if the total value exceeds certain thresholds. These assets can include foreign bank accounts, stocks, securities, and other financial instruments held outside the United States. The 8938 Form is part of the IRS's efforts to combat tax evasion and ensure compliance with U.S. tax laws regarding foreign assets.

How to use the 8938 Form

Using the 8938 Form involves several steps to ensure accurate reporting of foreign financial assets. First, determine if you meet the filing requirements based on your residency status and the total value of your foreign assets. If required to file, gather all necessary documentation, including account statements and asset valuations. Complete the form by providing detailed information about each specified foreign financial asset, including the name of the institution, account numbers, and asset values. After completing the form, it must be submitted along with your annual tax return to the IRS.

Steps to complete the 8938 Form

Completing the 8938 Form requires careful attention to detail. Follow these steps:

1. Determine filing requirement: Assess if your foreign financial assets exceed the reporting thresholds.
2. Gather documentation: Collect all relevant statements and valuations of your foreign assets.
3. Fill out the form: Provide accurate information for each asset, including type, value, and institution details.
4. Review your entries: Double-check for accuracy and completeness to avoid potential issues with the IRS.
5. Submit the form: File the completed 8938 Form with your annual tax return.

Legal use of the 8938 Form

The legal use of the 8938 Form is crucial for compliance with U.S. tax laws. Filing this form is mandatory for specified individuals who meet the asset thresholds. Failure to file can result in significant penalties, including fines and interest on unpaid taxes. The form must be completed accurately to ensure that all foreign financial assets are reported correctly. It is important to understand the legal implications of the form and to seek professional assistance if needed to ensure compliance.

Filing Deadlines / Important Dates

The filing deadlines for the 8938 Form align with the annual tax return deadlines. Typically, the form must be submitted by April fifteenth, although extensions may be available. If you file for an extension on your tax return, the 8938 Form is also extended to October fifteenth. It is essential to keep track of these dates to avoid late filing penalties and ensure that all required information is submitted on time.

Penalties for Non-Compliance

Non-compliance with the filing requirements of the 8938 Form can lead to severe penalties. The IRS imposes a penalty of $10,000 for failing to file the form when required. Additionally, if the failure continues for more than ninety days after the IRS notifies the taxpayer, an additional penalty of $10,000 may apply for each thirty-day period of non-compliance. In extreme cases, criminal charges may be pursued for willful failure to report foreign financial assets.