Fill out Form 8938, Statement of Specified Foreign Financial Assets with Instafill.ai
Form 8938, Statement of Specified Foreign Financial Assets, is used by U.S. taxpayers to report their specified foreign financial assets. This form is important for ensuring compliance with U.S. tax laws regarding foreign investments and accounts.
#1 AI PDF Filling Software of 2024
3 out of 4 customers say they prepare their Form 8938 forms in 37 seconds or less
Secure platform for your PDF forms and personal information
Form 8938, Statement of Specified Foreign Financial Assets free printable template
Instafill Demo: filling out a legal form in 27 seconds
How to Fill Out Form 8938 Online for Free in 2024
Are you looking to fill out a 8938 form online quickly and accurately? Instafill.ai offers the #1 AI-powered PDF filling software of 2024, allowing you to complete your 8938 form in just 37 seconds or less.
Follow these steps to fill out your 8938 form online using Instafill.ai:
- 1 Visit instafill.ai site and select Form 8938.
- 2 Enter your name and TIN.
- 3 Select your type of filer.
- 4 Provide details of foreign accounts and assets.
- 5 Sign and date the form electronically.
- 6 Check for accuracy and submit form.
Our AI-powered system ensures each field is filled out correctly, reducing errors and saving you time.
Why Choose Instafill.ai for Your Fillable Form 8938 Form?
Speed
Complete your Form 8938 in as little as 37 seconds.
Up-to-Date
Always use the latest 2024 Form 8938 form version.
Cost-effective
No need to hire expensive lawyers.
Accuracy
Our AI performs 10 compliance checks to ensure your form is error-free.
Security
Your personal information is protected with bank-level encryption.
Frequently Asked Questions About Form Form 8938
Form 8938, Statement of Specified Foreign Financial Assets, is a report required by the Internal Revenue Service (IRS) to be filed by certain U.S. taxpayers who have an interest in specified foreign financial assets and/or signing authority over those assets. The form must be filed with the taxpayer's annual income tax return, if the total value of the specified foreign financial assets exceeds certain thresholds. The thresholds vary depending on the taxpayer's tax filing status and tax residence. Form 8938 is required for tax years beginning after March 18, 2010.
There are three categories of filers for Form 8938: 1) Specified Individuals, which includes U.S. citizens, resident aliens, and certain nonresident aliens; 2) Specified Domestic Entities, which includes estates, trusts, and domestic partnerships; and 3) Specified Foreign Financial Institutions, which includes foreign financial institutions that have an account held for the benefit of a U.S. person. Each category has different reporting requirements and thresholds.
Part I of Form 8938 requires taxpayers to report information about their foreign financial accounts, including the name of the foreign financial institution, the account number, the maximum value of the account during the tax year, and the country where the account is located. This information is reported for each account that meets the reporting threshold. Taxpayers must also report the aggregate maximum value of all their foreign financial accounts.
A deposit account is a type of financial account that holds cash or cash equivalents, such as a checking or savings account. A custodial account, on the other hand, is an account where a financial institution holds, manages, and reports on behalf of another party. For Form 8938 purposes, a custodial account includes accounts held at a foreign financial institution, such as a brokerage account, mutual fund, or retirement account. The reporting requirements for deposit accounts and custodial accounts are the same, but the information reported may differ.
Part II of Form 8938 requires taxpayers to report information about their other foreign assets, including the name of the asset, the maximum value of the asset during the tax year, and the country where the asset is located. This information is reported for each asset that meets the reporting threshold. The types of assets that must be reported include stocks, securities, partnership interests, real property, and any other financial interest in a foreign entity. Taxpayers must also report the aggregate maximum value of all their other foreign assets.
A foreign asset is any financial interest in or signature authority over a financial account in a foreign country, or any financial asset outside the United States if the taxpayer has an interest in the asset exceeding certain thresholds. This includes, but is not limited to, stocks, securities, mutual funds, options, annuities, accounts receivable or payable, deposits in foreign banks, and real property located outside the United States. Reporting thresholds vary based on tax filing status and taxpayer residency status.
A specified individual is a U.S. person who is required to file Form 8938. This includes U.S. citizens, resident aliens, and certain nonresident aliens. A partnership is a business entity that is not an individual, corporation, or trust. A corporation is a legal entity that is taxed separately from its owners. A trust is a legal arrangement where one party holds and manages assets on behalf of another party. Each entity type has different reporting requirements and forms for filing with the IRS.
Certain forms and accounts may be excluded from reporting on Form 8938. For example, Form W-2, Form 1099-INT, Form 1099-DIV, and Form 1099-B reporting U.S. source income are generally not required to be reported on Form 8938. However, it is important to note that other forms and accounts may still need to be reported on other IRS forms, such as Form 3520 or Form 3520-A. Consult the instructions for Form 8938 and the IRS website for more information.
Multiple foreign assets or accounts should be reported on a single Form 8938 using the appropriate worksheets provided in the instructions. Each asset or account should be listed separately, along with its value and the foreign currency exchange rate used to determine the value. If the taxpayer has more than one foreign financial interest in the same foreign financial institution, they may be able to combine the interests into a single reporting unit. Consult the instructions for Form 8938 for more information.
Foreign currency exchange rates should be reported on Form 8938 using the rate in effect on the last day of the tax year. The taxpayer may use the rate published in the Federal Register or the rate provided by their financial institution. If the taxpayer used an alternative rate, they must provide an explanation and documentation to support the rate used. The exchange rate is used to convert the value of the foreign assets and accounts into U.S. dollars for reporting purposes.
A foreign entity refers to a foreign corporation, partnership, trust, estate, or other entity that is not a U.S. person. An interest in a foreign entity, on the other hand, refers to ownership in such an entity, including through direct or indirect ownership of stock or partnership interests. It is essential to report both the foreign entity and your interest in it if the aggregate value exceeds the reporting thresholds.
Part VI requires detailed information about each 'other foreign asset' included in the Part II summary. This includes the name of the foreign financial institution, the account number, the type of account, the maximum value during the taxable year, and the country where the account is located. This information is necessary to ensure proper reporting of your foreign assets and compliance with the tax laws.
An issuer is an entity that issues securities, while a counterparty is an entity with which a transaction is entered into. For Form 8938, you are required to report your direct or indirect ownership in foreign financial assets from issuers and counterparties. This information is necessary to provide a complete picture of your foreign financial assets and interests.
A U.S. person is any individual who is a citizen or resident of the United States, or an estate or trust that is administered in the United States. A foreign person is any individual, estate, or trust that is not a U.S. person. Form 8938 is required to be filed by U.S. persons reporting specified foreign financial assets, including foreign financial accounts, stocks, and other assets exceeding certain thresholds.
Failure to file Form 8938 on time may result in penalties. The penalty for not filing on time is generally $10,000 or 35% of the gross value of the foreign financial assets that should have been reported, whichever is greater. If you have failed to file Form 8938 and wish to come into compliance, you should consult a tax professional or the IRS for guidance on how to proceed.
The penalties for not filing or incorrectly filing Form 8938, Statement of Specified Foreign Financial Assets, can be severe. The IRS may impose a penalty of up to $10,000 for each nonwillful failure to file, report, and pay related taxes. For willful violations, the penalties can be much higher, including fines up to $50,000 or 50% of the amount in the account at issue, whichever is greater, and criminal penalties including imprisonment.
You can find more information about Form 8938, Statement of Specified Foreign Financial Assets, and its instructions on the IRS website. The instructions provide detailed information about who must file, what types of foreign financial assets are reportable, and how to report them. You can also contact the IRS Taxpayer Assistance Center for assistance with any questions you may have.
Compliance Form 8938
Validation Checks by Instafill.ai
1
Tax Year Identification
Ensures that the tax year is correctly identified at the top of the form. This involves checking that the year entered is current or appropriately corresponds to the tax year being reported. It prevents the filing of outdated or future tax information, maintaining the accuracy of the taxpayer's records.
2
Taxpayer Identifying Information
Confirms that the taxpayer's identifying information, including name(s) and Taxpayer Identification Number (TIN), matches the information on the annual return. This validation is crucial to ensure that the form is associated with the correct taxpayer and to prevent issues with identity mismatches or processing errors within the tax authority's systems.
3
Filer Type Verification
Verifies that the correct filer type (specified individual or specified domestic entity) is checked in line 3 of the form. This step is important to determine the applicable reporting requirements and to ensure that the form is completed in accordance with the filer's status.
4
Specified Domestic Entity Information
If a specified domestic entity is the filer, the system ensures that the name and TIN of the specified individual or person is entered correctly. This information is vital for the tax authority to identify the responsible parties and to cross-reference with other tax-related documents.
5
Foreign Account Summary and Validation
Summarizes and validates the number of foreign deposit and custodial accounts and their total maximum value reported in Part I. This check is essential to confirm that the taxpayer has accurately reported all foreign financial assets as required, and that the total values are correctly calculated and reported.
6
Indicates and confirms if any foreign accounts were closed during the tax year in Part I.
The AI ensures that Part I of the form accurately reflects whether any foreign accounts were closed during the tax year. It confirms the presence of a 'yes' or 'no' indication and checks for any additional required details if an account was closed. The AI also verifies that the closure date is within the tax year in question and prompts the user to correct any discrepancies. Lastly, it cross-references the reported information with previous years' filings, if available, to maintain consistency and accuracy.
7
Summarizes and validates the number of other foreign assets and their total maximum value in Part II.
The AI compiles a summary of all other foreign assets listed in Part II, ensuring that each asset is accounted for. It validates the total count of foreign assets and calculates their aggregate maximum value, checking for mathematical accuracy. The AI also reviews the classification of assets to ensure they meet the criteria for 'other foreign assets' as defined by the form's instructions. Additionally, it flags any assets that lack complete information or have values that fall outside typical ranges for further review.
8
Indicates and confirms if any foreign assets were acquired or disposed of during the tax year in Part II.
The AI checks Part II for indications of acquisition or disposal of foreign assets during the tax year. It confirms that each reported transaction includes a date and that the date falls within the appropriate tax year. The AI also ensures that any disposed assets are not mistakenly reported as still held at the end of the tax year. Furthermore, it verifies that the form includes all necessary details for each transaction, such as asset description and value at the time of acquisition or disposal.
9
Summarizes tax items attributable to specified foreign financial assets in Part III.
The AI summarizes and cross-verifies the tax items attributable to specified foreign financial assets as reported in Part III. It ensures that the income, deductions, and credits are accurately calculated and properly attributed to the correct assets. The AI also checks for consistency between the reported values and the taxpayer's tax return. It highlights any discrepancies or incomplete information for the user to address, and it confirms that the summary aligns with the requirements set forth by the tax authorities.
10
Indicates if specified foreign financial assets have been reported on other forms and validates the number of each form filed in Part IV.
The AI indicates whether the specified foreign financial assets have been reported on other required forms, as stated in Part IV. It validates the number of each type of form filed, ensuring that the counts are accurate and that no required forms are omitted. The AI cross-references the information with the actual forms submitted to detect any inconsistencies. Additionally, it alerts the user if there are assets that typically require additional reporting but for which no corresponding forms are listed.
11
Provides detailed information for each foreign deposit and custodial account in Part V.
The AI ensures that Part V of the Statement of Specified Foreign Financial Assets form is meticulously completed, providing comprehensive details for each foreign deposit and custodial account listed. It cross-references the information with existing records to confirm accuracy, checks for completeness of all required fields, and alerts the user to any missing or inconsistent data. This validation is crucial for maintaining the integrity of the financial information reported.
12
Provides detailed information for each 'other foreign asset' not held in a financial account in Part VI.
The AI verifies that Part VI of the form is filled out with precise details for each 'other foreign asset' not held in a financial account. It prompts the user to include all necessary descriptions, valuations, and other pertinent details. The AI also reviews the entries for completeness and consistency with the form's instructions, ensuring that no relevant asset is omitted and that the information provided meets the regulatory requirements.
13
Verifies the foreign currency exchange rate, including the currency, rate, and source, if used for valuation.
The AI checks the accuracy of the foreign currency exchange rate used for asset valuation on the form. It confirms that the currency, rate, and source are clearly stated and that the rate applied is current and obtained from a reliable source. The AI also compares the exchange rate used against standard financial databases to ensure that the valuation reflects the appropriate market value as of the reporting date.
14
Ensures compliance with specific instructions for reporting joint accounts or assets.
The AI ensures adherence to the specific instructions for reporting joint accounts or assets, as outlined in the form's guidelines. It verifies that the information provided for joint assets is accurate and that the form reflects the proportionate interest of the filer. The AI also checks that any necessary disclosures regarding joint ownership are made, and it guides the user to provide additional details if required by the form's instructions.
15
Confirms that the form is signed, dated, and attached to the annual return, filed by the due date.
The AI confirms that the Statement of Specified Foreign Financial Assets form is properly signed and dated by the filer. It ensures that the form is correctly attached to the annual tax return and checks that the submission is made by the prescribed due date. The AI also reminds the user of the impending deadline and provides a checklist to verify that all procedural steps for filing have been completed, thus avoiding any penalties for late or incomplete submissions.
Common Mistakes in Completing Form 8938
Failure to identify the correct tax year in the top section of the Statement of Specified Foreign Financial Assets form can lead to significant errors in reporting. To avoid this mistake, carefully review the instructions and ensure that the tax year selected matches the tax year being reported. It is essential to double-check the consistency of the tax year throughout the form to prevent discrepancies.
Forgetting to provide essential identifying information, such as the name and Taxpayer Identification Number (TIN), can result in processing delays or even rejection of the form. To prevent this mistake, ensure that all required fields are accurately and completely filled out before submitting the form.
Misidentifying the filer status, whether individual or entity, can lead to incorrect reporting and potential penalties. To avoid this mistake, carefully review the instructions and determine the appropriate filer status based on the form's requirements. It is essential to double-check the consistency of the filer status throughout the form to prevent discrepancies.
Neglecting to provide required information for specified domestic entities, such as the name and address, can result in processing delays or even rejection of the form. To prevent this mistake, ensure that all required fields for domestic entities are accurately and completely filled out before submitting the form.
Incorrect reporting or omission of foreign deposit and custodial accounts in Part I of the Statement of Specified Foreign Financial Assets form can lead to significant errors in reporting and potential penalties. To avoid this mistake, carefully review the instructions and ensure that all foreign financial accounts are accurately reported and listed in Part I. It is essential to double-check the consistency of the information reported throughout the form to prevent discrepancies.
The Statement of Specified Foreign Financial Assets (FinCEN Form 114) requires taxpayers to report their interest in specified foreign financial assets. Neglecting to report or omitting foreign assets in this section can lead to potential penalties. To avoid this mistake, taxpayers should carefully review their foreign assets and ensure they are all reported accurately. It is essential to understand that the reporting threshold for this form is relatively low, and failure to report may result in significant consequences.
Part III of the Statement of Specified Foreign Financial Assets requires taxpayers to report various tax items related to their foreign assets. Failing to report or incorrectly reporting these items can lead to underreporting of income or overpayment of taxes. To avoid this mistake, taxpayers should carefully review the instructions for Part III and ensure they are reporting all required tax items accurately. It is essential to understand that failure to report or underreporting of income can result in significant penalties.
Part IV of the Statement of Specified Foreign Financial Assets requires taxpayers to report any Forms 3520, 3520-A, 5471, 8621, or 8865 that have been filed during the reporting period. Failing to report these forms can result in penalties and potential audits. To avoid this mistake, taxpayers should ensure they have filed all required forms related to their foreign assets and report them accurately in Part IV. It is essential to understand that failure to report these forms can lead to significant consequences.
Parts V and VI of the Statement of Specified Foreign Financial Assets require taxpayers to provide personal and contact information. Failing to provide complete and accurate information in these sections can result in delays in processing the form or potential penalties. To avoid this mistake, taxpayers should ensure they provide all required information accurately and completely. It is essential to understand that failure to provide complete and accurate information can lead to significant consequences.
If taxpayers have foreign financial assets reported in a currency other than the U.S. dollar, they are required to report the value of those assets in U.S. dollars using the applicable exchange rate. Failing to provide this information can result in incorrect reporting of assets and potential penalties. To avoid this mistake, taxpayers should ensure they have the correct exchange rates and report the values of their foreign assets accurately in U.S. dollars.
Failure to sign and date the Statement of Specified Foreign Financial Assets form and attach it to the annual return can result in rejection of the tax return. This mistake may delay the processing of your tax return and potentially lead to penalties. To avoid this error, ensure that all required signatures and dates are obtained and included on the form before submitting it with the annual return.
Maintaining a copy of the completed and signed Statement of Specified Foreign Financial Assets form is essential for your records. In case of an audit or review by the tax authorities, having a copy of the form on hand can help expedite the process and demonstrate compliance. To prevent the loss or misplacement of the form, consider keeping it in a secure and easily accessible location, such as a digital file or a safe deposit box.
The Statement of Specified Foreign Financial Assets form must be filed by the specified due date, which may include extensions granted by the Internal Revenue Service (IRS). Failing to meet the deadline can result in penalties and interest charges. To avoid this mistake, keep track of the due date and any extensions that may be available. Consider setting reminders or using a tax preparation software to help manage your filing deadlines.
Saved over 80 hours a year
“I was never sure if my IRS forms like W-9 were filled correctly. Now, I can complete the forms accurately without any external help.”
Kevin Martin Green
Your data stays secure with advanced protection from Instafill and our subprocessors
Robust compliance program
Transparent business model
You’re not the product. You always know where your data is and what it is processed for.
ISO 27001, HIPAA, and GDPR
Our subprocesses adhere to multiple compliance standards, including but not limited to ISO 27001, HIPAA, and GDPR.
Security & privacy by design
We consider security and privacy from the initial design phase of any new service or functionality. It’s not an afterthought, it’s built-in.
Fill out Form 8938 with Instafill.ai
Worried about filling PDFs wrong? Instafill securely fills 8938 forms, ensuring each field is accurate.
