IRS Form 8938, also known as the Statement of Specified Foreign Financial Assets, is a tax form used by individuals to report their foreign financial assets to the Internal Revenue Service (IRS). This form is required for individuals who meet certain thresholds for foreign financial assets and is used to ensure that all foreign income is reported and taxed properly. In this article, we will discuss who needs to use Form 8938, where to get it, how to use it, and answer some common questions related to this form.
Who Needs to Use Form 8938?
Form 8938 is required for individuals who meet certain thresholds for foreign financial assets. The thresholds are based on your filing status and whether you are living in the United States or abroad. For example, if you are single and living in the United States, you will need to file Form 8938 if you have foreign financial assets worth more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
Where to Get Form 8938?
Form 8938 can be obtained from the IRS website or by visiting your local IRS office. The form can also be obtained from a tax professional or tax software program.
How to Use Form 8938?
To use Form 8938, you will need to provide information about your foreign financial assets, including their value, type, and location. You will also need to provide information about any foreign accounts you have, including the name and address of the financial institution where the account is held. Once the form is completed, you should attach it to your tax return and file it with the IRS.
Common Questions About Form 8938
When is Form 8938 Due?
Form 8938 is due at the same time as your tax return. If you file a paper tax return, you should attach Form 8938 to your tax return and mail it to the address listed on your tax return. If you file your tax return electronically, you will need to attach Form 8938 to your tax return before submitting it to the IRS.
What happens if I don’t file Form 8938?
If you don’t file Form 8938, you may be subject to penalties and interest. The penalties for not filing Form 8938 can be as high as $10,000. Additionally, failure to file Form 8938 can also result in criminal penalties, including fines and imprisonment.
Do I need to file Form 8938 if I already reported my foreign financial assets on another form?
Yes, you may need to file Form 8938 even if you already reported your foreign financial assets on another form. For example, if you have foreign bank accounts, you may need to file both Form 8938 and Form 114 (Report of Foreign Bank and Financial Accounts).
Can I get an extension to file Form 8938?
No, you cannot get an extension to file Form 8938. If you cannot file your tax return on time, you should file for an extension to file your tax return using Form 4868. However, this extension only extends the time to file your tax return and does not extend the time to file Form 8938.
Consult A Professional With Questions
In conclusion, IRS Form 8938 is an important form for individuals who have foreign financial assets. By using Form 8938, you can report your foreign financial assets to the IRS and ensure that all foreign income is reported and taxed properly. It is important to file this form on time to avoid penalties and interest and to comply with IRS regulations. If you have any questions or need help completing this form, it is recommended that you consult a tax professional
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