Instructions For Form 8938 - Statement Of Specified Foreign Financial Assets

maximum value of the stock during

branch or foreign subsidiary of a U.S.

Foreign grantor trusts. If you are

the tax year of $150,000. If you are

financial institution.

considered the owner under the grantor

required to file Form 8938, the

Examples of financial accounts

trust rules of any part of a foreign trust,

maximum value of the foreign stock to

maintained by U.S. financial institutions

you do not have to report any of the

be reported is $150,000, based on

include:

specified foreign financial assets held

readily available information of the

U.S. mutual funds accounts;

by the part of the trust you are

stock’s maximum value during the tax

IRAs (traditional or Roth);

considered to own if you satisfy the

year.

Section 401(k) retirement accounts;

following conditions.

Qualified U.S. retirement plans;

You report the trust on a Form 3520

Valuing interests in foreign trusts. If

Brokerage accounts maintained by

that you timely file with the IRS for the

you are a beneficiary of a foreign trust,

U.S. financial institutions.

same tax year.

the maximum value of your interest in

2. A financial account that is

The trust timely files Form 3520-A,

the trust is the sum of the following

maintained by a dealer or trader in

Annual Information Return of Foreign

amounts.

securities or commodities if all of the

Trust With a U.S. Owner, with the IRS

The value of all of the cash or other

holdings in the account are subject to

for the same tax year.

property distributed during the tax year

the mark-to-market accounting rules for

from the trust to you as a beneficiary,

Instead, you must identify on Form

dealers in securities or an election

and

8938 how many of these forms you file.

under section 475(e) or (f) is made for

The value using the valuation tables

See

Part IV. Excepted Specified Foreign

all of the holdings in the account.

under section 7520 of your right as a

Financial

Assets, later.

beneficiary to receive mandatory

If you are a specified individual,

Certain financial assets. You do not

distributions as of the last day of the tax

you must include the value of

have to report any asset that is not held

year.

the assets reported on Forms

in a financial account if the asset is

CAUTION

Valuing interests in foreign estates,

3520, 3520-A, 5471, 8621, and 8865 in

subject to the mark-to-market

foreign pension plans, and foreign

determining whether you satisfy the

accounting rules for dealers in securities

deferred compensation plans. If you

reporting threshold that applies to you.

or commodities or an election under

have an interest in a foreign estate,

See

Reporting Thresholds Applying to

section 475(e) or (f) is made for the

foreign pension plan, or foreign deferred

Specified

Individuals, earlier.

asset.

compensation plan, the maximum value

of your interest is the fair market value

Domestic investment trusts. If you

Exceptions to Reporting

of your beneficial interest in the assets

are considered the owner under the

of the estate, pension plan, or deferred

grantor trust rules of any part of a

Duplicative reporting. You do not

compensation plan as of the last day of

domestic widely held fixed investment

have to report any asset on Form 8938 if

the tax year. If you do not know or have

trust under Regulations section 1.671-5,

you report it on one or more of the

reason to know based on readily

you do not have to report any specified

following forms that you timely file with

accessible information the fair market

foreign financial asset held by the part of

the IRS for the same tax year.

value as of the last day of the tax year,

the trust you are considered to own.

Form 3520, Annual Return To Report

the maximum value is the fair market

Transactions With Foreign Trusts and

Domestic bankruptcy trusts. If you

value, determined as of the last day of

Receipt of Certain Foreign Gifts.

are considered the owner under the

the tax year, of the cash and other

Form 5471, Information Return of

grantor trust rules of any part of a

property distributed during the tax year

U.S. Persons With Respect To Certain

domestic liquidating trust under

to you as a beneficiary or participant. If

Foreign Corporations.

Regulations section 301.7701-4(d) that

you received no distributions during the

Form 8621, Information Return by a

is created under chapter 7 or chapter 11

tax year and do not know or have

Shareholder of a Passive Foreign

of the Bankruptcy Code, you do not

reason to know based on readily

Investment Company or Qualified

have to report any specified foreign

accessible information the fair market

Electing Fund.

financial asset held by the part of the

value of your interest as of the last day

Form 8865, Return of U.S. Persons

trust you are considered to own.

of the tax year, use a value of zero as

With Respect to Certain Foreign

Bona fide resident of a U.S. posses-

the maximum value of the asset.

Partnerships.

sion. If you are a bona fide resident of

Instead, you must identify on Form

a U.S. possession (American Samoa,

Assets Not Required To Be

8938 the form(s) on which you report

Guam, the Northern Mariana Islands,

Reported

the specified foreign financial asset and

Puerto Rico, or the U.S. Virgin Islands),

how many of these forms you file. See

You are not required to report the

do not include the value of the following

Part IV. Excepted Specified Foreign

following assets.

assets to determine if you satisfy the

Financial

Assets, later.

reporting threshold that applies to you. If

Certain financial accounts. The

Joint Form 5471 or Form 8865 filers.

you are required to file Form 8938, you

following financial accounts and the

If you are included as part of a joint

do not have to report the following

assets held in such accounts are not

Form 5471 or Form 8865 filing and

specified foreign financial assets on

specified foreign financial assets and do

provide the notification required by

Form 8938.

not have to be reported on Form 8938.

Regulations section 1.6038-2(i) or

A financial account maintained by a

1. A financial account that is

Regulations section 1.6038-3(c), you

financial institution organized under the

maintained by a U.S. payer, such as a

are considered to have filed that form

laws of the U.S. possession of which

domestic financial institution. In general,

for purposes of Part IV, Excepted

you are a bona fide resident.

a U.S. payer also includes a domestic

Specified Foreign Financial Assets,

A financial account maintained by a

branch of a foreign bank or foreign

later.

branch of a financial institution not

insurance company and a foreign

-8-

Instructions for Form 8938 (2017)

Instructions For Form 8938 - Statement Of Specified Foreign Financial Assets - 2017 Page 8

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