Form 8938
Forms

Form 8938: Statement of Specified Foreign Financial Assets

Form 8938 is the form you will have to complete to report specified foreign financial assets, if you are a specified individual or a specified domestic entity. It requires you to report information such as the maximum value of your assets and the name and TIN of the individual or entity.

What is Form 8938?

Form 8938, or Statement of Specified Foreign Financial Assets, is an IRS form that must be filed if you are a specified individual or specified domestic entity with greater than $50,000 in total assets held in foreign accounts or other specified foreign financial assets. It allows the IRS to monitor foreign financial assets held by U.S. Taxpayers and ensure that any foreign income is correctly reported in the filing of the appropriate tax returns. In addition, it provides the IRS with the necessary information regarding the maximum value of the accounts and assets, the type of assets, information about the issuing/counterparty of the assets, and other relevant information.

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IRS Form 8938 – Who Needs to Fill It Out?

The IRS Form 8938 needs to be filed by specified individuals who report only a part of their specified foreign financial assets on other forms, as well as specified domestic entities where the individual who closely holds the partnership or corporation needs to be reported. After entering the name(s) and TIN at the top portion, filers must indicate the type of filer, and complete the appropriate parts. Further, filers must provide the maximum value, foreign currency exchange rate, and other identifying information for the accounts and assets being reported, as well as the number of forms filed for the same tax year. If more than one account or asset needs to be reported, additional statements must be included with the form.

Step-by-Step: Form 8938 Instructions For Filling Out the Document

Before you begin, it is important to make sure you understand the process for filling out the FORM 8938. For specified individuals, if the foreign assets are reported on the timely-filed forms 3520, 3520-A, 5471, 8621, and 8865, you only need to complete Part IV, entering your name and taxpayer identification number (TIN) at the top. If some assets have been reported on one of more of those forms but not all are included, then you will need to include the remaining assets on the Form 8938 and complete Part IV. If you have more than one account or asset to report, ensure to make the necessary copies of page 2 of the form and check the box at the top of page 1. You will also need to enter the tax year of the specified individual or specified domestic entity at the top of the form. Finally, for assets which you reported on other forms, enter the number of forms filed in Part IV.

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Below, we present a table that will help you understand how to fill out Form 8938.

Form 8938 Instructions
Before you begin, it is important to make sure you understand the process for filling out Form 8938.
  • Determine whether your foreign assets have been reported on other specified forms.
  • If reporting on Form 8938 is required, complete Part IV or include remaining assets if some have been reported on other forms.
  • Make necessary copies of page 2 of the form if you have multiple accounts or assets to report.
  • Enter the tax year and number of forms filed as needed.
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Do You Need to File Form 8938 Each Year?

Yes, all specified individuals and specified domestic entities are required to file Form 8938 each year if their total specified foreign financial assets exceed the reporting threshold. Individuals must complete Part IV only if they have already reported all required assets on Form 3520, 3520-A, 5471, 8621, or 8865. The filing must include the name and taxpayer identification number (TIN) at the top of the form, the period covered, the detailed information for each reported foreign deposit and custodial account, and the detailed information for each other foreign asset. If there are more than one account, asset, issuer or counterparty to report in Part V or VI, additional copies of page two of the form must be attached. Furthermore, if one or more foreign deposit or custodial accounts were closed during the tax year, this must also be reported.

Download the official IRS Form 8938 PDF

On the official IRS website, you will find a link to download Form 8938. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8938

Sources:

https://www.irs.gov/forms-pubs/about-form-8938

https://www.irs.gov/instructions/i8938

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