Part V, Form 8938 Details Foreign Deposit & Custodial Accounts

Part V of Form 8938 (Foreign Deposit & Custodial Account Details)

Part V of Form 8938 (Foreign Deposit & Custodial Account Details)

Part Five (5) of Form 8938 is very important, as it is used to describe in detail specific financial account information for each identified foreign and deposit custodial account identified in the part one summary. The purpose of part five of Form 8938 is for the Taxpayer to detail the specifics of each deposit and custodial account that taxpayer has to report. It is important to note, that there are many requirements when it comes to detailing the account information to the IRS — and it is a common part of the form the taxpayers make mistakes on. It is also important to note, that Form 8938 is not a “test,” you are not graded on your performance — and the purpose is simply to conduct a diligent and reasonable search of the information sufficient to provide necessary account values to reflect substantial compliance with the reporting requirements.

What does Part V of Form 8938 Require?

Here is Part V of Form 8938 summarized:

• • Type of account

    • Deposit

    • Custodial

  • Account number or other designation

    • Check all that apply

    • Account opened during tax year

    • Account closed during tax year

    • Account jointly owned with spouse

    • No tax item reported in Part III with respect to this asset

• • Maximum Value of Account During Tax Year

  • Did you use a foreign currency exchange rate to convert the value of the account into U.S. dollars? 

  • If you answered “Yes” to line 24, complete all that apply.

• • • Foreign currency in which account is maintained

    • Foreign currency exchange rate used to convert to U.S. dollars

    • Source of exchange rate used if not from U.S. Treasury Department’s Bureau of the Fiscal Service

  • Name of financial institution in which account is maintained

  • Global Intermediary Identification Number (GIIN) (Optional)

  • Mailing address of financial institution in which account is maintained. Number, street, and room or suite no.

  • City or town, state or province, country, and ZIP or foreign postal code

Form 8938/FATCA IRS Amnesty Programs

TheForm 8938/FATCA Amnesty Programs are programs developed by the Internal Revenue Service to assist Taxpayers who are already out of compliance for non-reporting.

Some of the more common programs include:

• • • Voluntary Disclosure Program (VDP or “New” OVDP)

    • Streamlined Domestic Offshore Procedures

    • Streamlined Foreign Offshore Procedures

    • Delinquency Procedures

    • Reasonable Cause

Can I Just Start Filing Form 8938 This Year Instead?

No, unless the current year is the first year you had a Form 8938 Reporting requirement. If you had a prior year reporting requirement, but only begin to start filing in the current year (Filing Forward) it is illegal. In the world of offshore disclosure, this is referred to as a Quiet Disclosure. The IRS has warned taxpayers that if they get caught in a Quiet Disclosure situation, it may lead to willful penalties and even a criminal investigation by the IRS Special Agents.

Our Form 8938/FATCA Lawyers Represent Clients Worldwide

Our International Tax Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure. 

Contact our firm today for assistance.