The Form 8938 (Statement of Specified Foreign Financial Assets) should be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. It is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply. Form 8938, the instructions, regulations implementing this new foreign asset report, and other information to help taxpayers determine if they are required to file Form 8938 is available on the web.
There are many private accountants and others who may offer tax information which may or may not be reliable. The Consulate General does not maintain a list of accountants nor can we endorse or recommend any particular person or agency who may offer such services.
Information for Individuals
Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting is made on Form 8938, which taxpayers attach to their individual federal income tax return. To help individuals understand how FATCA may impact their filing and reporting responsibilities, they have redesigned the IRS website and made it easier to navigate. The main page for individuals is found here.
From this main page, the user may click on additional hot links, depending on the topic. For example, there is a chart available (linked from this main page via a hot link) which describes types of foreign assets which may be reportable under the FATCA rules. On the right side of this main page under the heading “Summary of Form 8938 Requirements” is another hot link to a document titled “Summary of FATCA Reporting for U.S. Taxpayers.” This document provides the best summary of the filing and reporting responsibilities for individuals.
Information for Foreign Financial Institutions
FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest. Foreign Financial Institutions looking for information on this topic may visit the IRS website.
From this main page, the user may click on several hot links to find specific information related to FATCA regulations and guidance, the registration process, and schema requirements.
Combating Fraud, Waste and Abuse in Federal Tax Administration
The Treasury Inspector General for Tax Administration (TIGTA) is responsible for oversight of IRS activities and for maintaining integrity in the U.S. Federal tax system. Fraud, waste, and abuse in Federal tax administration are unfair to all U.S. taxpayers and can take a variety of forms. TIGTA’s oversight includes targeted audits, programmatic inspections and evaluations, and both criminal and administrative investigations of potential fraud, waste, and abuse. Examples include: Attempts by taxpayers to bribe IRS personnel; Assaults or threats by taxpayers against IRS employees or facilities; Theft of IRS tax remittances; Impersonation of the IRS organization or IRS personnel in schemes involving the Internet or the mail to obtain personal financial information; IRS employees who misuse their position for personal gain; Outside contractors defrauding the IRS through false claims, deceptive contract methods, and other fraud; Circumstances that could impede or hinder compliance with Federal tax laws and regulations; and, Apparent abuses of taxpayer protection and rights.
Please report any information that you may have related to potential fraud, waste, and abuse to the TIGTA Hotline.