IRS Updates FATCA Foreign Asset Reporting Form 8938

The Internal Revenue Service recently released an updated version of the IRS Form 8938 “Statement of Specified Foreign Financial Assets”.   Taxpayers with offshore accounts or assets with values above various thresholds are generally required to file a Form 8938 with their annual federal income tax return.  As a result of the recently implemented U.S. Foreign Account Tax Compliance Act (FATCA), foreign financial institutions have begun reporting U.S. taxpayer account information to the IRS.  This disclosure may result in the civil and criminal investigations of many of the taxpayers with unreported offshore holdings.  Failure to file a Form 8938, as well as a FinCEN Report 114 “Report of Foreign Bank and Financial Accounts” (FBAR) can lead to severe financial and legal consequences for taxpayers. If you have unreported offshore accounts or assets, contact the experienced tax attorney at Daniel Rosefelt & Associates, LLC, Attorney & CPA to discuss your legal options.