The Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. The authority for this new form comes from Section 511 of the Hiring Incentives to Restore Employment (HIRE) Act, P.L. 111-147, adding new Sec. 6038D, which states that a specified person who holds an interest in specified foreign financial assets must attach Form 8938 to that person’s income tax return, provided the aggregate value of the ... Form 8938 Department of the Treasury Internal Revenue Service ... If this asset has more than one issuer or counterparty, attach a continuation statement with the same information for each additional issuer or counterparty (see instructions). a: Name of issuer or counterparty Form 8938, Statement of Specified Foreign Financial Assets, was created for this purpose. Form 8938 must be included with the individual’s tax return. Failure to include the Form 8938, if required, could lead to significant penalties. Form 8938 is the IRS counterpart for the FBAR, or Foreign Bank Report, which certain holders of foreign bank accounts must file with FinCEN. Form 8938 was added as part of the HIRE Act at the same time the Foreign Account Tax Compliance Act (commonly known as FATCA) was adopted in 2010. The penalty for a failure to file Form 8938 is $10,000.
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