Heads up for Americans: New IRS form 8938

[tepa]

This pertains only to those who pay US tax and live abroad. There's a new IRS form that must be filed if you had foreign assets totaling $200,000 or more on the last day of 2011 (or $300,000 at any point during the year). For joint filers these limits are different. Parts of the form are not easy to figure out, and IRS will not discuss it with callers. The crucial thing to note is that not filing form 8938 accurately with your 1040 will result in massive penalties.

Professional tax preparers seem largely unaware of this sudden new expat tax nightmare.

Much of the information needed on the new form must already be given annually on TDF forms--but by no means all). Anyway, good luck to anyone who is affected. People with any substantial assets must now file BOTH the TDF form and the 8938 form.

[beach246]

Well, this is interesting:

2. You have an interest in specified foreign financial assets required to be reported.

A specified foreign financial asset is:

Any financial account maintained by a foreign financial institution, except as indicated above
Other foreign financial assets held for investment that are not in an account maintained by a US or foreign financial institution, namely:
Stock or securities issued by someone other than a U.S. person
Any interest in a foreign entity, and
Any financial instrument or contract that has as an issuer or counterparty that is other than a U.S. person.

Refer to the Form 8938 instructions for more information on the definition of a specified foreign financial assets and when you have an interest in such an asset.

I underlined that Stock line. Issued by someone other than a U.S. person? Does that mean stock in any foreign company? Or if it is traded on the NYSE it counts as a "U.S. Person?" What the hell does "U.S. Person" mean anyways?

Source: http://www.irs.gov/businesses/corpor...251217,00.html

[Plats]

Well, this is interesting:



I underlined that Stock line. Issued by someone other than a U.S. person? Does that mean stock in any foreign company? Or if it is traded on the NYSE it counts as a "U.S. Person?" What the hell does "U.S. Person" mean anyways?

Source: http://www.irs.gov/businesses/corpor...251217,00.html

If you buy IBM or SONY from a US broker no 8938 is necessary. The broker will report dividends or sales proceeds to the IRS.