Temporary Suspension of "New Form" 8938Posted on September 29 2011 by admin
Starting in 2011, those taxpayers with foreign bank accounts and/or direct holders of foreign investments will have to file another informational tax form. This Form will be attached to their Form 1040, and does not replace the FBAR Form that many taxpayers have already been filing to report their holdings in foreign bank accounts, foreign life insurance, and certain foreign pensions.
Notice 2011-55 suspends the requirement to attach Form 8938 to income tax returns that are filed before the release of Form 8938. Once the Form 8938 is released, such individuals for whom the suspension applied will be required to attach Form 8938 for the suspended tax year to their next income tax or informational return.
The suspension will have the affect of extending the statute of limitations. The new statute of limitations for this Form will not expire before three years after the date that the IRS receives Form 8938.
Failure to file the suspended Form 8938 with the appropriate tax return may result in the assessment of penalties.
The above information is general in nature and an advisor should be contacted to determine an individuals proper reporting obligations.
By Debra Callicutt, 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.
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