Reporting Foreign Financial Assets with Form 8938
Form 8938 – Statement of Specified Foreign Financial Assets
Who needs Form 8938?
Unless an exception applies, specified individuals with an interest in specified foreign financial assets more than the applicable threshold amount must file Form 8938.
What is the purpose of Form 8938?
Form 8938 is used to report specified foreign financial assets in which an individual has an interest more than the applicable threshold amount.
A person is a specified individual if he or she is a U.S citizen, a resident alien of the U.S., a non-resident alien who makes an election to be treated as a resident alien for the purposes of filing a joint income tax return, or a non-resident alien who is a bonafide resident of American Samoa or Puerto Rico.
Is Form 8938 accompanied by other forms?
The 8938 Form is attached to your annual income tax return (Form 1040 or 1040NR).
When is the Form 8938 due?
The 8938Form is due by the filing due date for the annual individual return, normally by April 15th.
How is the Form 8938 completed?
The Form 8938 is divided into six parts. The form also has a Continuation Statement applies to parts V and VI of the form.
Part I: Foreign Deposit and Custodial Accounts Summary.
Line 1: Number of deposit accounts
Line 2: Maximum value of all deposit accounts
Line 3: Number of custodial accounts
Line 4: Maximum value of all custodial accounts
Line 5: Were any foreign deposit or custodial accounts closed during the tax year?
Part II: Other Foreign Assets Summary
Line 1: Number of foreign assets
Line 2: Maximum value of assets
Line 3: Were any foreign assets acquired or sold during the tax year?
Part III: Summary of tax items attributable to specified foreign financial assets. There are five columns in this section.
Column (a): Asset Category
Column (b): Tax Item
Column (c): reported on form or schedule
Column (d): Form and line
Column (e): Schedule and line
There are two asset categories, Foreign Deposit and Custodial Accounts and Other Foreign Assets. Refer to the IRS written instructions for more details on how to complete this section of the form.
Part IV: Excepted Specified Foreign Financial Assets
In this section, select the number of such forms filed. Assets reported on the forms listed in this section do not need to be on Form 8938.
Part V: Lines 1 thru 6. Detailed information for each foreign deposit and custodial account included in Part I. Lines 7a, 8, and 9. Detailed information each foreign deposit and custodial account included in Part I Summary.
Part VI: Detailed information each “other foreign asset” included in the Part II summary. There are eight sections. Refer to the IRS written form instructions for more detailed information on how to complete this section of the form. Also, refer to the written instructions on how to complete the Continuation Statement.
For more information on the 8938 form, check out the following video:
What is the mailing address for the Form 8938?
There is no specific mailing address for the Form 8938. The form is attached to either the Form 1040 or 1040NR.