Welcome Guest. Register Now!  


For 2014 Tax Tips For Year 2014.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-19-2015, 01:19 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
IRS created a new reporting requirements of filing Form 8938 to holders of Foreign Assets!

The US Congress passed the Hiring Incentives in October 2010, to Restore Employment (HIRE) Act, which also created new tax reporting requirements for holders of foreign assets.

Though it appears that "Form 8938 is similar to the FBAR, however it applies to a wider range of foreign assets with a higher dollar threshold. Per the assets covered include all your foreign financial accounts and other financial assets you hold for investment, including foreign stocks, bonds, mutual funds, foreign hedge funds, private equity funds, foreign trusts and estates, and interests in privately held foreign entities.

According to the IRS, the threshold amounts vary according to your filing and residence status:

1. If you are unmarried, or married filing separately, you must file if the value of all your specified foreign financial assets exceeds $50,000 at the end of the year or $75,000 at any time during the year. If you live abroad, the thresholds are $200,000 and $300,000 respectively.

2. If you are married filing jointly, you must file if the value exceeds $100,000 at the end of the year or $150,000 at any time during the year. If you live abroad, the thresholds are $400,000 and $600,000 respectively.

"Furthermore, the penalties for failing to file Form 8938 are quite significant, but not quite as bad as those you face with an FBAR failure to file. The basic penalty is $10,000 per year but goes up to as much as $50,000 per year if you still don’t file the form after receiving an IRS notice.

In addition, a 40% accuracy related penalty and a 75% fraud penalty can also apply if you underpaid tax on income you should have reported."

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax amount differences between H1B visa holders and green card holders and what are the things need to be changed after GC santanu.sarkar24 Estimated Taxes 0 09-12-2013 08:53 PM
What are the exceptions for filing a FBAR (Foreign Bank and Financial Accounts) Form? TaxGuru For 2013 0 06-24-2013 01:50 PM
IRS issues stringent filing requirements of Form 8938 to taxpayers with substantial foreign assets. TaxGuru Filing Requirements 0 01-03-2012 01:50 PM
How long should "account holders" or taxpayers reporting a FBAR report, retain records of the foreign accounts? TaxGuru Filing Requirements 0 08-15-2011 11:55 PM
FBAR reporting requirements [email protected] Filing Requirements 0 11-11-2008 02:59 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.