What is fatca reporting under section 6038D?
6038D, enacted as part of the Foreign Account Tax Compliance Act (FATCA), requires individuals to report interests in specified foreign financial assets (SFFAs) when they file their federal tax returns for tax years beginning after March 18 2010, using Form 8938, Statement of Specified Foreign Financial Assets.
What is an exempt specified foreign financial asset?
Except as otherwise provided in this section, a specified foreign financial asset includes any financial account maintained by a foreign financial institution. A specified foreign financial asset includes a financial account maintained by a financial institution organized under the laws of a U.S. possession.
What is Form 8938?
Use Form 8938 to report your declared foreign financial assets if the total value of all the declared foreign financial assets in which you have an interest is more than the appropriate reporting threshold.
What does fatca stand for?
Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (FATCA) is an important development in the United States' efforts to combat tax evasion by US persons who hold accounts and other financial assets offshore.
What is the difference between FBAR and Form 8938?
FBAR, is that Form 8938 is filed only when an individual meets the filing threshold AND must file a tax return. So if a person does not have to file a tax return (because they are below the threshold, for example), the 8938 is also not required in the current year.
Who must file 8938?
Unmarried US residents must file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year.
What is the difference between FBAR and 8938?
Why was FATCA introduced?
FATCA was ostensibly enacted for the purpose of exposing non-US financial accounts of US resident taxpayers rather than identifying non-resident US citizens and enforcing collections. By law, financial institutions must report the information they collect to the US Internal Revenue Service (IRS).
'Reportable Accounts' are 'financial accounts' held by the FI where the 'Account Holder' is either a specified UK person (essentially an individual, partnership or unlisted company) resident in the UK or is a non-UK entity, the 'controlling persons' of which includes one or more UK specified persons.
Do I have to report foreign property on Form 8938?
You do not need to report this property on Form 8938 or other FATCA forms, even if it is a rental property. Under certain circumstances, you may be required to file a Form 3520 to report a distribution from a foreign trust, foreign estate, or gift from a foreign person of more than $100,000 during the year.
Do I have to report foreign property to the IRS?
Foreign real property is not a specified foreign financial asset that must be reported on Form 8938. For example, a personal residence or a rental property does not need to be reported.
FATCA stands for the Foreign Account Tax Compliance Act, in case you didn't know. Although not everyone knows what FATCA stands for, they are confident they …