Form 8938 – Statement of Specified Foreign Financial Assets due April 15, 2014

Do you own foreign investments? Don’t forget Form 8938.

If you own foreign investments, you may have an additional federal tax form to file this year.

Form 8938, “Statement of Specified Foreign Financial Assets,” is due April 15, 2014, and is filed as part of your individual tax return. You’ll use Form 8938 to disclose interests in certain foreign financial accounts when your ownership exceeds the reporting requirements.

Form 8938 Reporting Requirements

What are the reporting requirements? They vary depending on where you live and your filing status. For example, say you’re married and live in the United States, and you’ll file a joint tax return for 2013. You’ll include Form 8938 with your tax return when the total value of your reportable assets on the last day of 2013 was more than $100,000, or if the value exceeded $150,000 at any time during the year.

Reportable assets include investment accounts you own that are held in foreign financial institutions, interests in foreign entities, and stocks or securities issued by foreign individuals or companies.

You’ve probably noticed the reporting requirements are similar to the “Report of Foreign Bank and Financial Accounts” (FBAR), a separate return you may already be filing. Be aware the new Form 8938 does not replace the FBAR, which you’ll still need to complete by June 30, 2014.

Form 8938 Penalties

Penalties for failure to file Form 8938 start at $10,000. We urge you to contact us so we can help you evaluate your filing requirements for foreign investments.

Questions?

If you own foreign investments and have questions about form 8938, please call: 650-344-6525.

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