United States - Foreign asset reporting: Release of Form 8938 draft instructions

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Under section 6038D of the Code, individuals holding any interest in a Specified Foreign Financial Asset (SFFA) must report certain information to the IRS if the aggregate value of all such assets exceeds $50,000, or higher as the Secretary may prescribe. Section 6038D also authorizes the IRS to require similar reporting by certain domestic entities. This provision was enacted as part of the FACTA provisions of the 2010 Hiring Incentives to Restore Employment Act. A "specified individual" will be required to report these SFFA holdings using Form 8938, which is still in draft but has an anticipated final release date of November 2011. The IRS recently circulated draft instructions dated September 28th that contain various thresholds and clarifications.