IRS letter on your desk?We take over contact with the IRS.IRS Audit RepresentationExams, appeals, collections, penalty reliefBusiness TaxPlanning and compliance for mid-size companiesIndividual & Family TaxHigh-net-worth, multi-state and cross-borderOffshore Disclosure & SDOPFBAR, PFIC and Streamlined filingsTaxpayer Rights in an IRS AuditYour rights, step by stepAudit & AssuranceAudits, reviews, 401(k) plan auditsGovernment Contracting8(a), DCAA, incurred cost submissionsMergers & AcquisitionsDue diligence, QoE, valuations
Government contractorsDCAA, rates and incurred costGovernment Contractors & TechnologyIT, professional services, federal primes and subsReal Estate & ConstructionOwners, developers, contractorsMedical Practices & ClinicsPhysicians, urgent care, clinics, dentalHealthcare StaffingTravel nurse, allied and per diem agenciesRestaurants, Retail & HospitalityFranchises, multi-unit, hotels, e-commerceSoftware & SaaSRevenue recognition, sales tax, R&DRestaurantsTip credit, payroll and sales taxRealtors & AgentsCommissions, S corp and deductionsStaffing & IT CompaniesIT staffing, software, multi-state payroll
New YorkMidtown Manhattan officeWashington, DCOffice · 20 F St NWNew YorkOffice · Avenue of the AmericasNorthern VirginiaHeadquarters · AshburnTexasDallas, Houston, Austin, San AntonioCaliforniaLos Angeles, Bay Area, San DiegoRaleigh, NCResearch Triangle and CharlotteChicago, ILChicago, Naperville, SchaumburgBoston, MABoston, Cambridge, WalthamSeattle & Redmond, WASeattle, Redmond, BellevueAtlanta, GAAlpharetta, Johns CreekPhiladelphia, PAKing of Prussia, Cherry HillDetroit, MITroy, NoviColumbus, OHDublin, WestervillePhoenix, AZChandler, Tempe
International tax · IRC § 6038D
Form 8938 is filed with your income tax return when specified foreign financial assets exceed set thresholds. Missing it carries penalties and can keep the entire return open to IRS assessment.
Serving United States, Virginia, Washington, DC, Maryland.
What we handle
A US taxpayer living in the US who files single must generally file Form 8938 if specified foreign financial assets exceed $50,000 at year end or $75,000 at any time during the year; married couples filing jointly use $100,000 and $150,000. Thresholds are much higher for taxpayers living abroad. Assets include foreign bank and brokerage accounts, foreign stock held directly, interests in foreign entities and some foreign insurance and pension products.
Form 8938 and the FBAR overlap but are not the same. Many people must file both. A missing Form 8938 can lead to a $10,000 penalty, more after IRS notice, a 40% penalty on understatements tied to undisclosed assets, and under section 6501(c)(8) the statute of limitations for the whole return stays open until the form is filed.
Speak with an advisorWhere we help
A $10,000 penalty for failure to file, plus up to $50,000 more if the failure continues after IRS notice.
The assessment period for the entire return does not close until required foreign information is reported.
A 40% accuracy penalty applies to understatements from undisclosed foreign financial assets.
Taxpayers who qualify as living abroad use much higher reporting thresholds.
Our approach
A senior advisor reviews your facts and documents.
Scope, fees and timeline in an engagement letter.
Returns, elections and forms prepared and reviewed.
IRS contact and planning all year.
Questions
If your question isn't here, call (703) 880-8412 and you'll reach a person.
Often yes. The FBAR has a $10,000 threshold and covers signature-authority accounts; Form 8938 has higher thresholds and covers some assets the FBAR does not, such as directly held foreign stock.
Real estate held directly is not reported on Form 8938, but property held through a foreign company or trust may be.
The fix depends on whether income was also unreported. We review the years and use the delinquent information return or Streamlined procedures as appropriate.
Yes. Green card holders are US residents for tax purposes and file it if they meet the thresholds.
Latest updates
FinCEN issued a final rule revising BOI reporting. Business owners should confirm whether their entities still have a filing obligation.
Source: Federal Register
The IRS took down the page that described penalty relief for late FBARs when all income had been reported. Get advice on reasonable cause or the Streamlined procedures before filing late FBARs.
Source: EY Tax News
Related
Streamlined Domestic Offshore Procedures (SDOP), Streamlined Foreign Offshore Procedures, late FBAR and international information return filings, and voluntary disclosure support for foreign accounts and assets.
Learn moreHeadquartersAddress, local tax issues and the full range of services in Northern Virginia.
Learn moreForm 5471 for US owners, officers and directors of foreign corporations, including Indian private limited companies: filing categories, Subpart F and section 951A income, section 962 elections, penalties and Farhy.
Learn moreInternational taxForm 8865 for US persons with interests in foreign partnerships and LLPs: filing categories, contributions and transfers, penalties and how to fix missed years.
Learn moreInternational taxForm 3520 for gifts and inheritances from parents and relatives abroad, foreign trust distributions and Form 3520-A: thresholds, deadlines, penalties and how to file late.
Learn moreInternational taxUS tax returns for Americans and green card holders living abroad: the foreign earned income exclusion, foreign tax credit, FBAR and Form 8938, state residency and the Streamlined Foreign Offshore Procedures.
Learn moreNRIsStreamlined Domestic and Foreign Offshore Procedures for NRIs and expats with unreported Indian or other foreign accounts: NRE/NRO accounts, fixed deposits, mutual funds (PFIC), FBAR and Form 8938.
Learn moreInternational taxFBAR filing for US persons with foreign bank and financial accounts: who must file FinCEN Form 114, the $10,000 threshold, deadlines, penalties after Bittner v.
Learn moreStart a conversation
Tell us what you're facing. A senior advisor will reply within one business day with a clear next step.