We Prepare Tax Returns!

We prepare most type of tax returns:


S Corporation.

C Corporation.




Pay Your CPA

Enter $ Below
Other Amount:
Your Email Address:

Form 8938 CPA comments on FATCA, FBAR and OVDP

Form 8938 CPA OVDP Form 5471 FBAR

Gary Bode, CPA: Form 8938 is similar to other IRS revenue matching initiatives. (910) 399-2705.

Form 8938 CPAs monitor FATCA (Foreign Account Tax Compliance Act) implementation closely. FATCA makes progress bank by bank. For example an Israeli bank issued a directive to American clients urging FATCA compliance, basically admitting they will no longer adhere to any banking secrecy rules.

Form 8938, Statement of Foreign Financial Assets, Basics

Essentially Form 8938 is self-disclosure for foreign assets worth over $50,000 at the end of the year, or $75,000 at any time during the year. Form 8938 attaches to the parent return; 1120-S for S Corporations, Form 1065 for Partnerships, Form 1040 for individuals etc. So it’s due when the parent return is due. Reporting is in US currency.

FBAR Basics

FBAR (Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts) is self-disclosure of foreign bank account balances. The reporting threshold is a $10,000 aggregate value held anytime during the tax year. It doesn’t attach to any other tax return. It’s due on June 30th. No time extension exists for FBAR. Penalties for non-reporting are severe and appear to be consistently enforced.

Implications of Form 8938 and FBAR

From experience, the IRS believes Billions of tax dollars illegally escape through foreign banks. So the IRS expects FATCA to reduce this area of tax avoidance.

“FATCA acts like other familiar IRS revenue matching programs. Like Form 1099-MISC for subcontractors. The foreign bank issues reporting forms to both the IRS and client, and then the client self-reports this same information to the IRS on Form 8938. “
– Gary Bode, Form 8938 CPA

OVDP is the Carrot and FATCA is the Stick

OVDP (Offshore Voluntary Disclosure Program), commonly called OVDI, allows taxpayers to self-report past foreign bank related indiscretions. OVDI applications go to the Criminal Investigation unit of the IRS. OVDP application can be simple; preparing un-filed FBARs, completing some application forms and paying a stiff fine. But sometimes seven years of amended back tax returns are required since un-filed FBARs and or Form 5471s often translate to under reported income. Criminal charges are waived. Your future tax returns are probably more likely to be audited.

Why am I a Form 8938 CPA? This blog site drew ExPat and foreign clients who needed help with OVDP application and/or preparing Form 5471. Form 2555 too of course. As our ExPat client base grew we developed a virtual office to provide excellent customer service wherever you or your company resides. Of course we offer a free phone consult (10AM – 8PM ET M-F and 10AM to 4PM Saturdays) at (910) 399-2705.

Find me on Google+

Comments are closed.