Form 8938 – Statement of Foreign Financial Assets Requirement for Domestic Entities Postponed
On January 23, 2013, the IRS and Treasury Department issued Notice 2013-10 providing that filing of Form 8938 for certain domestic entities for taxable years beginning after December 31, 2011 will be postponed until the date specified in the final regulations. Those final regulations are expected to be released later in the year and will specify the effective/ applicable date for the filing of the form. The notice further goes on to provide that date will not be earlier that taxable year ends beginning after December 31, 2012.
Notice 2013-10 does not change the filing requirement for U.S. individual taxpayers. Form 8938 will still need to be included in Form 1040 returns when the individual has sufficient foreign financial accounts and investments in non-financial foreign entities. Form 8938 is an attachment to Form 1040 and should be included with the 1040 return.
Form 8938 becomes necessary for U.S. individual taxpayers based upon the values of the foreign financial accounts and investments in non-financial foreign entities owned in excess of certain thresholds. The thresholds for filing form 8938 are provided in the following chart:
|Filing Status||Living inside the U.S.||Living outside the U.S.|
|Single/Married Filing Separate||$50,000 on last day of year or more than $75,000 at any point during the year||$200,000 on last day of year or more than $300,000 at any point during the year|
|Married Filing Joint||$100,000 on last day of year or more than $150,000 at any point during the year||$400,000 on last day of year or more than $600,000 at any point during the year|