Form 8938, Statement of Specified Foreign Financial Assets, is filed by certain USPs to report their interest in the FP. Form 8938 is filed with the USP’s Form 1040. Simplified reporting on Form 8938 is provided with respect to interests in FPs also reported on Form 8865.
Note: an interest in a FP not required to be reported on Form 8865 will be reported on Form 8938, provided the USP satisfies the Form 8938 filing thresholds. Reporting on Form 8938 is governed by IRC §6038D.
Penalties may apply for failure to file Form 8938 as well as extend the statuteof-limitations on then USP’s return. Unless an exception applies.
The following individuals are required to file Form 8938 to report their interest in a FP:
- A U.S Citizen
- A resident alien of the United States for any part of the tax year
- A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return
A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Domestic entities (corporations, trusts and partnerships) are not yet required to file Form 8938 to report interests in FPs or other specified foreign financial assets. See Page 4