Statement of Specified Foreign Financial Assets (Form 8938)
The Statement of Specified Foreign Financial Assets or Form 8938 is one of the forms that tells the Internal Revenue Service (IRS) about financial assets you hold abroad.
If you are a U.S. taxpayer who lives outside of the U.S. and holds a total combined value of assets more than $300,000 at any time during the year, you need to report it using Form 8938.
If you forget to file the Form 8938, you may get a fine amounting to $10,000 up to $50,000 for continued failure to file after IRS notification. On top of that, the IRS says that “underpayments of tax attributable to non-disclosed foreign financial assets will be subject to an additional substantial underpayment penalty of 40%.”
You can download the Form 8938 here.
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