Published February 11, 2013, by G.F. Joey Musmar, Managing Partner MillerMusmar CPAs/ AICPA
This table can help you identify which foreign financial assets and accounts must be disclosed for 2011 on:
- Form 8938, Statement of Specified Foreign Financial Assets;
- Form FINCEN114, Report of Foreign Bank and Financial Accounts (commonly referred to as FBAR); or,
- Both Form 8938 and Form FINCEN114.
The table is based on information and FACTA guidance available as of September 1, 2018.
1 The data presented in this table is based on statutory language and final instructions to final Form 8938 for 2011, as well as temporary regulations currently in effect under Internal Revenue Code section 6038D.
2 Form TD F 90-22.1 is required of U.S. persons who have ownership, signature authority (alone or in conjunction with another individual) to control the disposition of assets.
3 Accounts and assets in possessions and territories such as Puerto Rico and U.S. Virgin Islands are deemed foreign for purposes of Form 8938, but are not considered foreign for purposes of FBAR. However, if you live in the possession as a bona-fide resident, the account there is not foreign.
4 For 2011, Form 8938 is only required to be filed by individuals. Per Prop. Reg. § 1.6038D-6, the reporting of specified foreign financial assets will also be required of specified domestic entities in future years.
5 The threshold applies to the aggregate value of all affected assets, as of December 31. It ranges from $50,000 for a single taxpayer living in the U.S. to $400,000 for couples filing jointly who live abroad. There are higher thresholds for maximum asset values during the year. Therefore, even though aggregate account(s) may be below the filing threshold at year end (or even closed by year end), a high value in the account(s) at any point during the year could potentially require the filing of the Form 8938.
6 See Form 8938, Part IV for excepted assets; you still need to identify cross reference the form(s) where you reported the assets. . However, include net asset value of constructively owned reportable foreign assets and accounts of a foreign corporation or foreign partnership when determining filing threshold for Form 8938. Directly owned stock of publically traded companies require you to report the highest market value in the reportable year.
Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended or written by the practitioner to be used and cannot be used by the taxpayer for the purpose of avoiding penalties. This is general guidance and is to be used for infomrational purposes only. The law is always changing, we highly recommend you speak to a CPA regarding how the law applies to you.
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