Form 8938 is used to report certain foreign financial assets held by an individual or a company. Examples of these financial assets include bank accounts, securities investments, real estate properties, and retirement plans. The individual or company that needs to file Form 8938 must do so along with their federal tax return.
Penalties : The penalty for not filing Form 8938 is $10,000 USD per form.
Is a foreign bank account reportable on Form 8938?
Yes, a foreign bank account might be a financial asset that would need to be reported on Form 8938. This will depend on the total value of all the foreign financial assets held by the individual or company. If the total value of these assets exceeds certain thresholds set by the IRS, then Form 8938 might need to be filed If the total value of the foreign financial assets is below the thresholds, then Form 8938 would not need to be filed.
What are the reporting thresholds for Form 8938?
The value thresholds for filing Form 8938 depend on whether the individual or company is single or married, and whether they are living inside or outside the U.S.. The thresholds for filing Form 8938 are:
- If the individual or company is single and lives inside the U.S., the threshold is $50,000 at the end of the year or $75,000 at any time during the year.
- If the individual or company is married and lives inside the U.S., the threshold is $100,000 at the end of the year or $150,000 at any time during the year.
- If the individual or company is single and lives outside the U.S., the threshold is $200,000 at the end of the year or $300,000 at any time during the year.
- If the individual or company is married and lives outside the U.S., the threshold is $400,000 at the end of the year or $600,000 at any time during the year.
These thresholds apply to the total value of all foreign financial assets held by the individual or company, not just bank accounts. If the total value of these assets exceeds the applicable thresholds, then Form 8938 would need to be filed along with the applicable 1040 form.
