The American Citizens Abroad organization recently published an article updating readers on the revised instructions for FACTA reporting.
Their article, dated January 22, 2015, reads as follows:
“If you have foreign financial assets, be sure to carefully read the new instructions for Form 8938, the form which details foreign financial assets (under FATCA) and which must be attached to your Form 1040 or 1040NR. The link to the instructions is: www.irs.gov/pub/irs-pdf/i8938.pdf
The instructions spell out the thresholds for the reporting requirement, detailed definition of the financial assets which must be included, rules for valuation of financial assets, and special reporting rules for certain Canadian funds, as well as penalties for non-filing.
Tax year 2014 (filing in 2015) is the first year for which foreign financial institutions will be reported under FATCA rules directly or indirectly to the IRS on all foreign financial assets owned by US persons. The IRS will be able to match information on your Form 8938 with information received from the foreign financial institution so accuracy on your part is very important.”
If you have questions as to how this applies to your specific tax situation, please contact Jason Kingston at email@example.com, or call (519) 249-1209