New tax reporting obligations for U.S. citizens: Form 8938
U.S. citizens and green card holders should be aware of a new reporting obligation that will affect returns filed in 2012. Form 8938 must be filed with
the annual tax return if the value of the taxpayer's foreign financial assets exceed certain thresholds, which vary depending on 1) whether the taxpayer
lives abroad or in the United States and 2) whether the taxpayer files a joint return or not. Form 8938 requires the reporting of information pertaining
to those foreign financial assets but does not give rise to any new tax. It's also important to note that form 8938 does not substitute the FBAR (Report
of Foreign Bank and Financial Accounts). For details, refer to the IRS website:
www.irs.gov/businesses/corporations/article/0,,id=251217,00.html
Be sure to discuss this form with your tax preparer as the penalties associated with this form are very high.
U.S. citizens and green card holders should be aware of a new reporting obligation that will affect returns filed in 2012. Form 8938 must be filed with
the annual tax return if the value of the taxpayer's foreign financial assets exceed certain thresholds, which vary depending on 1) whether the taxpayer
lives abroad or in the United States and 2) whether the taxpayer files a joint return or not. Form 8938 requires the reporting of information pertaining
to those foreign financial assets but does not give rise to any new tax. It's also important to note that form 8938 does not substitute the FBAR (Report
of Foreign Bank and Financial Accounts). For details, refer to the IRS website:
www.irs.gov/businesses/corporations/article/0,,id=251217,00.html
Be sure to discuss this form with your tax preparer as the penalties associated with this form are very high.
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