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8/14/12 Basic Questions and Answers on Form 8938 Basic Questions and Answers on Form 8938 Q&A 1 14, posted 02 29 12 Q&A 15 23, posted 06 07 12 1. What are the specified foreign financial assets that

How to fill out form 8938 basic questions

How to Fill out Form 8938 Basic Questions:

1. Gather all necessary information: Before starting to fill out Form 8938, make sure you have all the required information at hand. This includes your personal details, such as name, address, and Social Security number, as well as any relevant financial information, such as account numbers, balances, and income details.
2. Understand the purpose of Form 8938: Form 8938, also known as Statement of Specified Foreign Financial Assets, is used to report specified foreign financial assets exceeding certain thresholds to the Internal Revenue Service (IRS). It is required for U.S. citizens, resident aliens, and certain non-resident aliens.
3. Determine if you meet the filing threshold: The filing threshold for Form 8938 depends on various factors, including your filing status and whether you live in the United States or abroad. It is essential to review the instructions provided by the IRS or consult a tax professional to determine if you meet the threshold requirements for filing.
4. Complete Part I of Form 8938: In Part I, you need to provide your personal information, including your name, address, and taxpayer identification number. Ensure that all the information is accurate and up to date.
5. Report your specified foreign financial assets: Part II of Form 8938 requires you to report the specified foreign financial assets that you held during the tax year. This includes bank accounts, brokerage accounts, certain foreign retirement plans, and other investment accounts. Provide the required details for each asset, such as the maximum value during the year and the income it generated.
6. Determine if you need to file additional forms: Depending on your foreign financial assets, you may need to file additional forms, such as FinCEN Form 114 (Report of Foreign Bank and Financial Accounts) or Form 3520 (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts). Be aware of any other reporting requirements that may apply to your situation.
7. Sign and date the form: Once you have completed all the necessary sections of Form 8938, sign and date the form as required. Remember, providing false information or failing to file the form when required may result in penalties or legal consequences.

Who needs Form 8938 Basic Questions?

1. U.S. citizens: Form 8938 is required for U.S. citizens, whether they reside in the United States or abroad, if they meet the specified filing threshold for foreign financial assets.
2. Resident aliens: Resident aliens, including green card holders, must also file Form 8938 if they meet the filing threshold requirements.
3. Non-resident aliens: Certain non-resident aliens may need to file Form 8938 if they meet the criteria specified by the IRS, such as those who elect to be treated as U.S. residents for tax purposes.

It is important to consult the IRS guidelines and seek professional advice to determine if you are required to file Form 8938 based on your specific circumstances. Failure to comply with the reporting requirements may result in penalties and other legal consequences.

For pdfFiller’s FAQs

What is form 8938 basic questions?

Form 8938, also known as the Statement of Specified Foreign Financial Assets, is a form used by taxpayers to report their specified foreign financial assets to the IRS.

Who is required to file form 8938 basic questions?

US citizens, resident aliens, and certain nonresident aliens who have an interest in specified foreign financial assets and meet the reporting threshold are required to file Form 8938.

How to fill out form 8938 basic questions?

Form 8938 must be filled out accurately, including providing information on the taxpayer's foreign financial assets, income attributable to those assets, and other required information.

What is the purpose of form 8938 basic questions?

The purpose of Form 8938 is to help the IRS identify taxpayers who may have unreported foreign financial assets and income, and to combat tax evasion.

What information must be reported on form 8938 basic questions?

Taxpayers must report information about their specified foreign financial assets, including the maximum value of each asset during the tax year.

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