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Saturday, December 20, 2014

Highlights of Final Regulations for Reporting of Specified Foreign Financial Assets

The Treasury Department has issued final regulations relating to reporting of specified foreign financial assets on Form 8938. The highlights include:

  1. Dual Resident Taxpayers. Dual resident taxpayers reporting as a nonresident alien under a treaty do not need to file.
  2. Nonfilers. Persons who do not have to otherwise file an income tax return do not have to file a Form 8938.
  3. Nonvested Property. Property received in connection with the performance of personal services is not treated as having an interest until it is vested under Section 83.
  4. Disregarded Entities. Taxpayers need to look through them to calculate filing thresholds and reporting of assets owned.
  5. Jointly Owned Assets. Unmarried joint owners must include the full value of each jointly owned asset in determining filing thresholds and in reporting the assets themselves. Married persons filing separately must do the same.
  6. Foreign Current Exchange Rates. Now issued by the Bureau of the Fiscal Service (and not the Financial Management Service).

T.D. 9706, December 12, 2014

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