U.S. TAX GUIDE IN SAUDI ARABIA
What is Form 8938?
Form 8938, or the Statement of Specified Foreign Financial Assets, is essential for US citizens and green card holders living abroad to report their foreign financial assets.
When do I need to file Form 8938?
You must file Form 8938 if your foreign financial assets exceed these thresholds:
- Single or Married Filing Separately:
- Over $200,000 on the last day of the tax year.
- Over $300,000 at any point during the year.
- Married Filing Jointly:
- Over $400,000 on the last day of the tax year.
- Over $600,000 at any point during the year.
Are there penalties for late filing?
Yes, penalties for not filing on time start at $10,000, with the IRS evaluating each case individually.
How can I reduce my penalties?
You can potentially reduce penalties through the Streamlined Filing Compliance Procedures if you can prove your failure to file was non-willful.
