TO:

FROM: Peter Staron

Date 6/8/2015
This memo is about Form 8938(Statement of Specified foreign Financial Assets) and
FinCEN Form 114(Report of Foreign Bank and Financial Accounts). Form 8938
(Statement of Specified foreign Financial Assets) filling requirement does not
replace having to file FinCEN Form 114 (Report of Foreign Bank and Financial
Accounts).
FinCEN Form 114 must be filled by any U.S. persons, which include U.S. citizens,
resident aliens, trusts, estates, and domestic entities (domestic entities are Limited
Liability Company, corporation, partnership) that have an interest in foreign
financial accounts and meet the reporting threshold. The reporting threshold is
$10,000 anytime during the calendar year. An interest in a foreign account is when
you are the owner of record or holder of legal title, you have a sufficient interest in
the entity, or if you have signature authority. A foreign account is an account which
has foreign stocks or securities that is being held at a foreign financial institution.
Only the total value of the account has to be reported not its the contents. Social
security type benefits or foreign real estate held directly programs do not have to
be reported.
Form 8938 must be filed by U.S citizens, resident aliens, and certain non-resident
aliens that have an interest in specified foreign financial assets and meet the
reporting threshold. The reporting threshold is $50,000 on the last day of the tax
year of $75,000 at any time during the tax year. Having an interest is classified as
having any income, gain losses, deductions, credits, grosses proceeds or
distributions from holding or to be reported. A foreign account is any foreign stocks
or securities held in a financial account at a foreign financial institution. The value
of the foreign account has to be reported not the contents. Social security type
benefits programs and foreign real estate held directly do not have to be reported.