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
We Specialize in Streamlined & Offshore Voluntary Disclosure
Our firm specializes exclusively in international tax, and specifically IRS offshore disclosure. Foreign pension tax and reporting is a common issue we handle.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20-years experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Our lead attorney is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
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No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
We specialize in FBAR and FATCA. Contact our firm today for assistance with getting compliant.