The IRS has released Form 8938 which is required to be attached to your 2011 Form 1040 if your foreign assets exceed certain thresholds. Anyone living in the U.S. or abroad, as a U.S. citizen, resident (or non-resident filing a joint return with a resident), and even nonresidents living in a U.S. territory, must determine whether this form is required or face significant penalties. The aggregate asset value to trigger a reporting requirement begins at $50,000 for some individual taxpayers living in the U.S., going up to $400,000 for a married couple living abroad, who file a joint return. Penalties for a failure to file Form 8938 begin at $10,000, escalating to $50,000 if a taxpayer fails to file the form after IRS notification, and an additional 40 percent penalty may apply in some cases.
Click Here to view the new Form 8938, or click here to read the official announcement from the IRS' website.
If you need further information, or are unsure if you need to use this new form, contact our office at 916-488-8501.