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U.S. citizens, U.S. individual residents, and a very limited number of nonresident individuals who own certain foreign financial accounts or other offshore assets specified foreign financial assets, SFFA, must report those assets by using the U.S. Treasury’s Form 8938, Statement of Specified Foreign Financial Assets, and attach this form to an annual income tax return, generally but not always, Form 1040, U.S. Individual Income Tax Return.

Individuals with a total value of specified foreign financial assets below a

certain threshold do not have to file Form 8938.  However, if the total value is at or below

$50,000 at the end of the tax year, there is no reporting requirement for the year, unless the total value was more than $75,000 at any time during the tax year.

The threshold is higher for individuals who live outside the United States and thresholds are different for married and single individuals.

Note that individuals who do not have to file an income tax return for the tax year, then do not have to file Form 8938, regardless of the value of their specified foreign financial assets.

Caution, harsh penalties will apply for failure to file accurately