In December 2011, the IRS released the new Form 8938 used to report specified foreign financial assets. The form was released in response to the temporary regulations issued for IRC 6038D, as part of the larger crackdown on taxpayers with under reported foreign assets. The new form is filed with the taxpayer’s individual return if their specified foreign financial assets exceed certain limits. The recent tax season (tax year 2011) was the first time the form was required.
This June, the IRS released a series of FAQs to lend guidance on Form 8938 reporting. The 23 FAQs address who needs to file the form along with what assets should or should not be reported. Click here to view the Form 8938 FAQs.