Form 8938 is designed to be used by the Internal Revenue Service for combating international tax evasion and requests information about foreign asset s.
Yes, most people have to file both. Married individuals filing jointly and residing in the United States are required to file Form 8938 if their foreign financial assets are valued greater than $100,000 on the last day of the year or greater than $150,000 at any point during the year.
Generally not, but it depends. Form 8938 itself is not an audit trigger. If you follow the rules and report foreign asset s, you will generally not be audited. The failure to file may result in an audit and penalties.
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 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.