Starting from Tax Year 2012, all Taxpayers with considerable “financial assets abroad will have to file Form 8938, Statement of Specified Foreign Financial Assets
. For Taxpayers who are filing Married Filing Joint status tax returns and live in the U.S., they must attach Form 8938 if the value of their foreign financial assets exceeds $100,000 at the end of 2011 or exceeds $150,000 at any time during the year.
For Taxpayers who are filing as Single status tax returns and live in the U.S. must attach Form 8938 if the value of their foreign financial assets exceeds $50,000 at the end of 2011 or exceeds $75,000 at any time during the year.
In addition, these “thresholds are halved for singles in the U.S. and are doubled for single filers who live abroad.”
The amounts are quadrupled for joint filers living outside the U.S. Foreign financial assets include bank accounts, interest in foreign businesses and foreign investment assets. Penalties for Not Timely Filing Form 8938.
The penalties for failing to file Form 8938 are extremely harsh, and can range from $10,000 to up to $50,000. Taxpayers are also reminded that “the requirement to file Form 90-22.1 with Treasury if the total of your foreign accounts is more than $10,000 also remains in effect.”
For more information on Form 8938, please click the following link below. http://www.irs.gov/pub/irs-pdf/i8938.pdf