Hale Sheppard, who Renounce calls the FBAR Scholar, has published an article in the most recent issue of the International Tax Journal, which focuses on Form 8938. It is called “The New Duty to Report Foreign Financial Assets on Form 8938: Demystifying the Complex Rules and Severe Consequences for Noncompliance.”
He has distributed it to members of American Citizens Abroad (“ACA”) as he thought we would find it interesting, because (i) it contains a thorough analysis of the Form 8938 filing requirements and rules, incorporating guidance from various sources, (ii) it discusses the overlap between Form 8938 and the FBAR, and (iii) it explains the largely unappreciated consequences for taxpayers who fall into non-compliance.
Of course, there are other articles out there describing the rules related to Form 8938. Hale’s is different in two major ways:
First, to help clarify the complicated issues, the article incorporates guidance from all available sources, including the tax code, regulations, IRS forms and instructions, government reports, IRS websites, etc. The idea is that taxpayers should not have to consult a variety of sources to get the key data; it can all be found in one article.
Second, instead of just reciting the rules as many articles do, his actually describes why Form 8938 is extremely important in many unknown ways. This occurs in the portion called “The Importance of Code Sec. 6038D – Why Does It Really Matter?”
BTW, if there are any new readers here who have never read Hale Sheppard’s “The Evolution of the FBAR, Where we were, Where we are, and Why it matters”, I highly recommend it. It is one of my key links on the OVDI Drudgery for Minnows. I wished I had known of it, and read it in 2006 when he published it. It would have saved me a lot of grief!