8938 Requirement for Business Entities PostponedPosted on February 8 2012 by admin
As a follow up to the blog Ringing In the New Year, the IRS just released the final version of Form 8938, Statement of Specified Foreign Financial Assets, and its instructions. Individuals must refer to these instructions to report specified foreign financial assets under Internal Revenue Code Section 6038D beginning in tax year 2011. For now, the IRS has only issued regulations for individuals. Therefore, domestic entities will not need to file Form 8938 until the IRS has finalized these regs, which will most likely be 2012.
The newly released instructions can be found at http://www.irs.gov/pub/irs-pdf/i8938.pdf and provide detailed guidance on the following:
• Who is required to file
• Filing thresholds
• Determining fair market value
• Dates to use for valuation determination
• Currency exchange rate dates – www.fms.treas.gov/intn.html
You may also refer to the aforementioned blog for a brief summary of these requirements. The IRS will be posting updates and recent developments relating to this form on their website at www.irs.gov/form8938.
Penalties for failure to file or disclose required information are heavy, starting at $10,000, unless substantiated with a reasonable cause and not willful neglect. A failure continuing for more than 90 days after the day on which the IRS mails a notice of the failure will lead to an additional penalty of $10,000 for each 30-day period (or fraction thereof) during which the failure continues after the 90-day period has expired, up to a maximum penalty of $50,000 for each such failure.
Jill A. Helm, CPA
There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne, LLP we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.
Before posting a comment on a blog post please be aware that we do not give free tax advice to non-clients by email, comment response, or phone. Thank you!
- Changes to Form 8621 Filing Requirements
- The Capital Gains Look-Through Rule at a Glance
- Can Spouses Help each Other Lower Their Self Employment Tax?
- Temporary Regulations Provide Guidance on Form 5471
- New Like-Kind Exchange Reporting Required for California (IRC 1031)
- Survey Suggests Taxpayers are Overconfident in Their Tax Prep Skills
- Timing Rules for SEPs and SIMPLE-IRAs Part II
- Timing Rules for SEPs and SIMPLE-IRAs Part I
- Are You an Identity Theft Victim?
- Supreme Court Decides Severance Pay is Subject to FICA Tax