United States - IRS confirms treatment of certain foreign asset reporting scenarios

Global Watch ()

Internal Revenue Code §6038D mandates that certain individuals must report specified foreign financial assets (SFFAs) if their interests in SFFAs exceed various thresholds. If reporting is required, the taxpayer must disclose their SFFAs on Form 8938 (Statement of Specified Foreign Financial Assets) filed with their U.S. federal income tax return. Recently, the Internal Revenue Service (IRS) issued Basic Questions and Answers on Form 8938 (Q&As) on their website. Although this guidance does not appear to provide novel interpretations, the Q&As provide welcome confirmation regarding certain reporting scenarios.