Instructions For Form 8938 - 2016 (Page 8 of 14) in pdf

financial asset and include the

the tax year. If you do not know or have

you report it on one or more of the

maximum value of the entire asset.

reason to know based on readily

following forms that you timely file with

accessible information the fair market

the IRS for the same tax year.

Valuing financial accounts. You may

value as of the last day of the tax year,

Form 3520, Annual Return To Report

rely on periodic account statements for

the maximum value is the fair market

Transactions With Foreign Trusts and

the tax year to report a financial

value, determined as of the last day of

Receipt of Certain Foreign Gifts.

account's maximum value unless you

the tax year, of the cash and other

Form 5471, Information Return of

know or have reason to know based on

property distributed during the tax year

U.S. Persons With Respect To Certain

readily accessible information that the

to you as a beneficiary or participant. If

Foreign Corporations.

statements do not reflect a reasonable

you received no distributions during the

Form 8621, Information Return by a

estimate of the maximum account value

tax year and do not know or have

Shareholder of a Passive Foreign

during the tax year.

reason to know based on readily

Investment Company or Qualified

Valuing other specified foreign fi

accessible information the fair market

Electing Fund.

nancial assets. In most cases, you

value of your interest as of the last day

Form 8865, Return of U.S. Persons

may use the value of a specified foreign

of the tax year, use a value of zero as

With Respect to Certain Foreign

financial asset that is not a financial

the maximum value of the asset.

Partnerships.

account and that is held for investment

Instead, you must identify on Form

and not held in an account maintained

Assets Not Required To Be

8938 the form(s) on which you report

by a financial institution as of the last

the specified foreign financial asset and

Reported

day of the tax year, unless you know or

how many of these forms you file. See

You are not required to report the

have reason to know based on readily

Part IV. Excepted Specified Foreign

following assets.

accessible information that the value

Financial

Assets, later.

does not reflect a reasonable estimate

Certain financial accounts. The

Joint Form 5471 or Form 8865 filers.

of the maximum value of the asset

following financial accounts and the

If you are included as part of a joint

during the tax year.

assets held in such accounts are not

Form 5471 or Form 8865 filing and

Example. I have publicly traded

specified foreign financial assets and do

provide the notification required by

not have to be reported on Form 8938.

foreign stock not held in a financial

Regulations section 1.6038-2(i) or

account that has a fair market value

1. A financial account that is

Regulations section 1.6038-3(c), you

as of the last day of the tax year of

maintained by a U.S. payer, such as a

are considered to have filed that form

$100,000, although, based on daily

domestic financial institution. In general,

for purposes of Part IV, Excepted

price information that is readily

a U.S. payer also includes a domestic

Specified Foreign Financial Assets,

available, the 52-week high trading

branch of a foreign bank or foreign

later.

price for the stock results in a

insurance company and a foreign

Foreign grantor trusts. If you are

maximum value of the stock during

branch or foreign subsidiary of a U.S.

considered the owner under the grantor

the tax year of $150,000. If you are

financial institution.

trust rules of any part of a foreign trust,

required to file Form 8938, the

Examples of financial accounts

you do not have to report any of the

maximum value of the foreign stock to

maintained by U.S. financial institutions

specified foreign financial assets held

be reported is $150,000, based on

include:

by the part of the trust you are

readily available information of the

U.S. mutual funds accounts;

considered to own if you satisfy the

stock’s maximum value during the tax

IRAs (traditional or Roth);

following conditions.

year.

Section 401(k) retirement accounts;

You report the trust on a Form 3520

Qualified U.S. retirement plans;

Valuing interests in foreign trusts. If

that you timely file with the IRS for the

Brokerage accounts maintained by

you are a beneficiary of a foreign trust,

same tax year.

U.S. financial institutions.

the maximum value of your interest in

The trust timely files Form 3520-A,

the trust is the sum of the following

2. A financial account that is

Annual Information Return of Foreign

amounts.

maintained by a dealer or trader in

Trust With a U.S. Owner, with the IRS

The value of all of the cash or other

securities or commodities if all of the

for the same tax year.

property distributed during the tax year

holdings in the account are subject to

Instead, you must identify on Form

from the trust to you as a beneficiary,

the mark-to-market accounting rules for

8938 how many of these forms you file.

and

dealers in securities or an election

See

Part IV. Excepted Specified Foreign

The value using the valuation tables

under section 475(e) or (f) is made for

Financial

Assets, later.

under section 7520 of your right as a

all of the holdings in the account.

beneficiary to receive mandatory

If you are a specified individual,

Certain financial assets. You do not

distributions as of the last day of the tax

you must include the value of

have to report any asset that is not held

year.

the assets reported on Forms

CAUTION

in a financial account if the asset is

3520, 3520-A, 5471, 8621, and 8865 in

Valuing interests in foreign estates,

subject to the mark-to-market

determining whether you satisfy the

foreign pension plans, and foreign

accounting rules for dealers in securities

reporting threshold that applies to you.

deferred compensation plans. If you

or commodities or an election under

See

Reporting Thresholds Applying to

have an interest in a foreign estate,

section 475(e) or (f) is made for the

Specified

Individuals, earlier.

foreign pension plan, or foreign deferred

asset.

compensation plan, the maximum value

Domestic investment trusts. If you

of your interest is the fair market value

Exceptions to Reporting

are considered the owner under the

of your beneficial interest in the assets

grantor trust rules of any part of a

of the estate, pension plan, or deferred

Duplicative reporting. You do not

domestic widely held fixed investment

compensation plan as of the last day of

have to report any asset on Form 8938 if

Instructions for Form 8938 (2016)

Instructions For Form 8938 - 2016 Page 8

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