10 – Financial Assets Outside Accounts (Form 8938)

The purpose of IRS Form 8938 is to report your “specified foreign financial assets” if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold. This form is part of the Foreign Account Tax Compliance Act (FATCA), which was enacted in 2010 to curb foreign tax evasion.

Unbordered prepares Form 8938 for clients when required. We already collect some of the information for this form when you fill out Unbordered Form #9 – FinCEN Form 114 (FBAR) – Non-U.S. Account Information. However, Form 8938 requires the inclusion of foreign financial assets held outside financial accounts. The purpose of this form is to alert us to reportable assets you own that are not held in accounts.