Are you tired of being confused and intimidated by tax forms? Good news, because we're here to help! In this blog post, we're going to break down everything you need to know about IRS Form 8938. That's right: no more head-scratching or dread-filled procrastination when it comes to filling out this form. So grab a cup of coffee (or tea), get comfy, and let's tackle the ins and outs of Form 8938 together.

What is Form 8938?

You must need to know what is form 8938 is a form that is filed with the Internal Revenue Service (IRS) to report certain foreign financial assets. If you have financial assets that are held in a foreign country, you may be required to file Form 8938.

Some of the types of foreign financial assets that must be reported on Form 8938 include:

-Bank accounts
-Securities
-Insurance policies
-Retirement accounts

Failure to file Form 8938 when required can result in penalties of $10,000 or more. So it's important to make sure that you understand the requirements for filing this form.

If you have any questions about whether or not you need to file Form 8938, you should speak with a tax professional.

Form 8938 Threshold Requirements

Form 8938 is an IRS form used to report certain foreign financial assets. The purpose of the form is to help the IRS detect and prevent tax evasion.

The form must be filed if you have specified foreign financial assets with a total value greater than the reporting threshold. The reporting threshold varies depending on your filing status and whether you live in the United States or abroad.

If you are required to file Form 8938, you must include it with your income tax return. The form must be filed electronically if you e-file your return.

Be sure to keep copies of all documentation related to your foreign financial assets, as you will need to provide this information when completing Form 8938.

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Who needs to file?

If you are a U.S. citizen or resident alien, the answer to this question is almost always "yes." The only exception is if your gross income (total income before subtracting any deductions) for the year is below the filing threshold, which varies depending on your filing status and age. For example, for 2019 taxes, the filing thresholds are $12,200 for single filers, $24,400 for married filers filing jointly, and $18,350 for head-of-household filers.1

If you're not sure whether you need to file a federal tax return, use the IRS's interactive tool to help you make that determination.2 You may also need to file a state tax return; check with your state tax agency for more information.3

If you're required to file but don't do so, you may be subject to penalties and interest charges.4 So if there's any chance you might owe taxes, it's better to err on the side of caution and file a return.

How to Fill Out and Read Form 8938

Form 8938 tax form is an IRS form that must be filed by certain individuals who own specified foreign financial assets. The purpose of this form is to help the IRS assess whether or not these individuals are paying their taxes on these assets.

In order to fill out Form 8938, you will need to gather information about your foreign financial assets. This includes information such as the name and address of the institution where the asset is held, the account number, and the value of the asset. You will also need to provide your contact information, as well as your Social Security number or Individual Taxpayer Identification Number.

Once you have gathered all of the required information, you can begin filling out Form 8938. The form itself is not very long, but it is important to carefully read and follow the instructions in order to ensure that you are providing accurate information.

After you have completed and filed Form 8938, you should keep a copy of the form for your records. You may also need to provide a copy of this form to your tax preparer when filing your annual tax return.

What happens if you forget to file?

If you forget to file your IRS form, you may be subject to a late filing penalty. The penalty is usually 5% of the unpaid taxes for each month that the return is late, up to a maximum of 25%. If you cannot pay the taxes you owe, you should contact the IRS to discuss payment options.

Late Filing Form 8938 Penalties

If you fail to file IRS Form 8938 by the deadline, you may be subject to a penalty. The penalty for late filing is $10,000, and you may also be subject to interest and other penalties.

Conclusion

The IRS Form 8938 can be an intimidating form to fill out, but it doesn't have to be. Following the tips in this article should help you successfully complete your IRS Form 8938 so that you can file your taxes with confidence. If at any time during the process, you feel overwhelmed or need assistance, don't hesitate to reach out for help from a tax professional. Good luck with filing your next tax return!

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