Instructions to Form 8938 - Statement of foreign financial assets 

January 9: The IRS posted final instructions for Form 8938, Statement of Specified Foreign Financial Assets (Rev. December 2013).

Read the Form 8938 instructions [PDF 245 KB]


A “specified individual” (generally a U.S. citizen or resident) having an interest in “specified foreign financial assets” must use Form 8938 to report the assets—if the total value of all specified foreign financial assets is more than the reporting threshold—even if none of the assets affects the individual’s tax liability for the year.

A filed Form 8938 does not relieve the taxpayer of the obligation to file the “FBAR” (FinCEN Form 114, Report of Foreign Bank and Financial Accounts (formerly TD F 90-22.1)).

The IRS provided a chart comparing the Form 8938 and FBAR filing requirements.

KPMG observation

Currently, the Form 8938 reporting requirements are limited to U.S. individuals. However, proposed regulations issued in 2011 would apply the reporting requirements to any domestic entity formed or availed of for purposes of holding specified foreign financial assets. Reporting by such domestic entities will not be required before the date specified by final regulations which, pursuant to IRS Notice 2013-10, will not be earlier than tax years beginning after December 31, 2012. Read TaxNewsFlash-United States: Notice 2013-10 - FATCA information reporting of foreign financial assets by U.S. entities

New items on Form 8938

The Form 8938 instructions (Rev. December 2013) list two new items:

  • Part I, Foreign Deposit and Custodial Accounts Summary - This is used to summarize the foreign deposit and custodial accounts information reported in all Parts V filed with Form 8938.

  • Part II, Other Foreign Assets Summary - This is used to summarize the “other foreign assets” information reported in all Parts VI filed with Form 8938.

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