FATCA Foreign Pension Plan Reporting & Form 8938
Do I report Pension of FATCA Form 8938? The tax and reporting of foreign pension plans has many facets to it, and one of them includes foreign asset disclosure to the IRS. FATCA is the Foreign Account Tax Compliance Act.Form 8938 is the IRS form used by Taxpayers in the U.S. to report Specified Foreign Financial Assets under FATCA.
Foreign Financial Institutions (FFI) abroad have their own separate reporting requirements.
Generally, Foreign Pensions are reportable on IRS Form 8938 for FATCA purposes.
And, with the IRS taking an aggressive position of matters involving Foreign Account Compliance, it is important to stay compliant.
We will summarize FATCA Foreign Pension Reporting on Form 8938.
Form 8938 Foreign Pension Plan Reporting
A Foreign Pension is a reportable asset.
For U.S. persons filing a tax return, it is required to be reported each year that the tax return is filed. Unlike other types of IRS international information reporting forms, the Form 8938 is included with most common types of tax software (such as TurboTax).
But, unlike several other international information reporting forms, if a person does not have a tax return filing requirement, the Form 8938 is not required.
In other words, several other international reporting forms, such as Form 3520, Form 5471, etc. are required, even if the individual does not have to file a tax return.
The 8938 is only included if you file a tax return.
In other words, if the person is below the threshold for having to file a Tax Return, then they do not have to file the return, just to report on Form 8938.
And, if a person receives an extension to file their tax return, the time to complete Form 8938 is also on extension.
Form 8938 Foreign Pension Plan Reporting Requirements
The 8938 is similar to the FBAR, but has more reporting requirements. For a foreign pension, not only is the account information included, but more specific information such as:
- Spousal Ownership
- Income Generated
- Tax Liability
- Opening and Closing of the account
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Our firm specializes exclusively in international tax, and specifically IRS offshore disclosure. Foreign pension tax and reporting is a common issue we handle.
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Generally, experienced attorneys in this field will have the following credentials/experience:
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