Form 8938 is designed to be used by the Internal Revenue Service for combat international tax evasion and request information about foreign asset s.
Yes, most people have to file both. Married individuals filing jointly and residing in the United States must file Form 8938 if their foreign financial assets are valued at greater than $100,000 on the last day of the year or greater than $150,000 at any point during the year.
There is a $10,000 penalty for failing to file Form 8938 by the due date.
Form 8938 is not an audit trigger. You will not be audited if you follow the rules and report foreign asset s. Failure to file may result in an audit.
Yes, if you are required to report foreign financial assets. It is not optional. For example, unmarried individuals residing in the United States are required to file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year (filing jointly the limit is $100,000).
Yes, the IRS can check foreign bank accounts via FATCA reporting by foreign banks.
Sometimes legal counsel is not necessary to correct Form 8938 errors. In some cases, legal counsel is strongly recommended. Unsure? Contact us.