U.S. Taxpayers Holding Foreign Financial Assets New Reporting Requirements

Beginning with tax year 2011, taxpayers with “Specified Foreign Financial Assets” that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. The new Form 8938 filing requirement does not replace or otherwise affect a taxpayers requirement to file the FBAR. A chart providing a comparison of Form 8938 and FBAR requirements, and other information to help taxpayers determine if they are required to file Form 8938, may be accessed from the IRS Foreign Account Tax Compliance Act Web page.
This form, when required, is filed with the Taxpayer’s annual tax return, if an income tax return filing is required.