IRS Solicits Comments on Foreign Asset Reporting Form

In today’s Federal Register, the IRS has published a notice seeking public comment on the Form 8938, “Statement of Foreign Financial Assets.”  (The form is available here.)  Individual taxpayers are required to file the Form 8938 annually with their income tax returns to report “specified foreign financial assets” as required by Section 6038D of the Internal Revenue Code, which is a new provision enacted as part of the Foreign Account Tax Compliance Act (FATCA).  The Form 8938 filing requirement become effective for the 2011 tax year, and the IRS is now seeking comments on the form, apparently as part of an effort to determine whether the form should be redesigned.  The Federal Register notice provides the following description of Form 8938 and its purpose:

The collection of information in Form 8938 will be the means by which taxpayers will comply with self-reporting obligations imposed under section 6038D with respect to foreign financial assets. The IRS will use the information to determine whether to audit this taxpayer or transaction, including whether to impose penalties. The information is also required to begin the running of the statute of limitations under section 6501.

Comments are due by August 26, 2013.

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