Foreign financial asset declaration form finalized

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The IRS on Saturday released the final version of Form 8938,
Statement of specified foreign financial assets, and published his instructions Monday. Affected taxpayers must use the form to report certain financial assets to the IRS.

Last week, the IRS issued temporary and proposed regulations on the new reporting requirement (TD 9567 and REG-130302-10). See “Regulations Issued for Reporting Specified Foreign Financial Assets”, December 15, 2011.

By virtue of the addition of Sec. 6038D in the Code, individuals are required to report interests in specified foreign financial assets (SFFAs) when filing their federal income tax returns. The law was in effect for tax years beginning after March 18, 2010; however, in Notice 2011-55, the IRS suspended the requirement until the publication of the final version of Form 8938. Therefore, taxpayers subject to the requirement must file the form in 2012 for the 2011 tax years. taxpayers who would have been required (except for the suspension of the requirement of Notice 2011-55) to file Form 8938 in 2011 for a tax year that began after March 18, 2010, must file it for the previous year with their return for the current tax year.

The second. The 6038D reporting requirement also applies to any domestic entity incorporated or used to hold specified foreign assets, but until the IRS issues regulations governing such domestic entities, only natural persons are required to complete the form 8939.

The final form is unchanged from the draft form published in June. The instructions, released as a draft in September, have been updated to reflect changes made by regulations over the past week, including a reduction in reporting thresholds for the value of specified foreign financial assets held at any time during of the fiscal year. The new thresholds for taxpayers residing in the United States are:

  • Single / married taxpayers filing separately: $ 50,000 on the last day of the year or $ 75,000 at any time of the year.
  • Joint deposit: $ 100,000 on the last day of the year or $ 150,000 at any time of the year.


The declaration thresholds for taxpayers residing abroad are:

  • Single / married taxpayers filing separately: $ 200,000 on the last day of the year or $ 300,000 at any time of the year.
  • Spouse living abroad deposit: $ 400,000 on the last day of the year or $ 600,000 at any time of the year.

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