Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-03-2012, 01:50 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
IRS issues stringent filing requirements of Form 8938 to taxpayers with substantial foreign assets.

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

__________________
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
Ads
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
The Foreign Account Tax Compliance Act (FATCA), requires Foreign Financial Institutions to report to IRS all financial accounts held by US Taxpayers! TaxGuru General 0 07-03-2011 05:08 PM
What are main requirements of the Foreign Account Tax Compliance Act (FATCA)? TaxGuru Miscellaneous 0 02-27-2011 10:41 PM
New York State issues tough e-File mandate for both taxpayers & tax return preparers! TaxGuru New York 0 10-11-2008 06:52 PM
What are the filing requirements to file a Gift Tax Return? Kathy Trusts and Gift Tax Returns 1 04-01-2008 09:39 AM
What is are the requirements for filing an estate tax return in 2007? Daso Estate Planning 1 07-30-2007 03:15 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.