Foreign Income, FBAR, & Form 8938

Do you have any foreign income? You need to report your worldwide income on your US tax return. Non-reporting or under reporting foreign income is viewed very strictly by IRS.

 

Do you have any interest or signature authority in foreign financial accounts/assets? If yes, you may need to complete one or both of the following reporting forms. Please note that non-compliance and/or failure to file warrants heavy penalties. You are requested to review the following information and let me know if you need to file any of the following forms. We are always here to help you.

 

FBAR: TD F 90-22.1: REPORT ON FOREIGN BANK & FINANCIAL ACCOUNTS
WHO MUST FILE AN FBAR: A US person that has financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. Failure to file warrants heavy penalties.

 

Form 8938: STATEMENT OF SPECIFIED FOREIGN FINANCIAL ASSETSS
If you have interest in specified foreign financial assets and the value of those assets is more than the appropriate reporting threshold and no exception applies, you need to file form 8938 even if none of the specified foreign financial assets affect your tax liability for the tax year. (Residential property non rented and kept for personal use does not become part of specified foreign financial assets)

Who Must File Form 8938?   Please review the below given table.

Reporting Threshold for Form 8938: If you satisfy any of the following reporting threshold and if no exception applies, you need to file Form 8938 with your income tax return.
Failure to file warrants heavy penalties.
If you are: (see below)The total value of your specified foreign financial assets as of the last day of the tax year is more thanThe total value of your specified foreign financial assets at any time during the tax year is more than
Unmarried taxpayer living in the United States$50,000 $75,000
Married taxpayer filing a Joint income tax return and living in United States$100,000 $150,000
Married taxpayer filing a separate income tax return and living in United States$50,000 $75,000
Taxpayers living abroad: your tax home is in a foreign country and/or you meet any of the presence abroad test$200,000 if not filing a joint income tax return. $400,000 if filing a joint income tax return.$300,000 if not filing a joint income tax return. $600,000 if filing a joint income tax return.
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