By now, many taxpayers with foreign accounts have heard of the FBAR (Report of Foreign Bank and Financial Accounts) and the different penalties for failing to file the FBAR. However, many of our new clients are still not familiar with Form 8939 (Statement of Foreign Financial Assets). Form 8938 is the result of a provision found in the Foreign Account Tax Compliance Act (FATCA) and set forth in Internal Revenue Code 6038(D).
While there are many similarities between Form 8938 and the FBAR, there are many differences. In most cases, taxpayers will be required to file both the FBAR and the Form 8938. Among the most basic differences are that the FBAR is filed separately from the income tax return and is due by June 30 of the following year; the Form 8938 is filed with the income tax return is due by the due of the return, including extensions. Further, the reporting thresholds are different for each form. For the FBAR, the reporting threshold is $10,000 or more at anytime during the calendar year; for Form 8939, the reporting threshold is $50,000 on the last day of the tax year or $75,000 at any time during the tax year (higher threshold amounts apply to married individual filing jointly and individuals living abroad.
Click on this link for a more detailed Comparison of Form 8938 and FBAR (Form 114)
If you have any questions regarding your Offshore Accounts/Assets and your filing requirements, call Holtz, Slavett & Drabkin to speak to a Former IRS Attorney.