IRS Form 8938

IRS Form 8938, Statement of Specified Foreign Financial Assets, is a form that certain taxpayers must file to report their ownership of foreign financial assets, such as bank accounts, stocks, or other investments held outside the United States. It helps the IRS ensure proper taxation of worldwide income and compliance with foreign asset reporting requirements, especially for high-net-worth individuals. Not all foreign assets need to be reported, but thresholds vary based on filing status and residence. Failing to file can result in penalties, so it's important for eligible taxpayers to accurately disclose their foreign holdings.