U.S. persons with interests in foreign financial assets may need to include a Form 8938 with their tax return. In this example, we look at an individual taxpayer that needs to disclose foreign assets.
The FBAR is filed by US persons that have an ownership interest or signature authority over foreign financial accounts.
The IRS Form 8938 is used to report ownership interest in foreign financial assets by U.S. taxpayers. This article and video tutorial review a sample filing for a U.S. taxpayer in the 2020 tax year.
The IRS will often impose penalties if certain tax forms are filed late or never filed at all. Some of the highest penalties apply to forms related to foreign income and assets.
When a U.S. person opens a foreign corporation, they are often confronted with many additional tax filing obligations. The IRS Form 5471 is included with an income tax return to report the U.S. person's interest in the foreign corporation.
Foreign Bank Account Report (FBAR) filings are generally required when U.S. persons have an ownership interest or signature authority over foreign financial accounts. This article discusses whether FBAR filings may be required for cryptocurrency holdings.
