Form 8938 (November 2012) – Tax Year 2012 Checklist
Purpose
Form 8938 requires U.S. citizens, residents, and certain nonresident aliens to report specified foreign financial assets exceeding aggregate filing requirements during 2012. This form was first required for tax year 2011, making 2012 the second year of mandatory reporting under the Foreign Account Tax Compliance Act (FATCA).
The form establishes reporting categories for foreign bank and Financial Accounts, foreign financial institution holdings, custodial accounts, and other foreign assets. Part III tracks tax items, and Part IV identifies excepted assets that have already been reported on different forms, including Form 3520.
Important Note Regarding Specified Domestic Entities
The November 2012 form includes references to specified domestic entities, such as foreign partnerships, foreign corporations, and foreign trust entities; however, specified domestic entities were not required to file Form 8938 for the tax year 2012.
During this period, only specified individuals were subject to filing requirements. The requirement for specified domestic entities applies to tax years beginning after December 31, 2015 (starting with tax year 2016 for calendar-year entities). The instructions explicitly state:
“Until the IRS issues such regulations, only individuals must file Form 8938.”
Step-by-Step Filing Requirements
1. Confirm Filing Requirement Under 2012 Thresholds
Determine whether the aggregate value of specified foreign financial assets exceeds the 2012 threshold amount for your filer category (specified individual filing single, married filing joint, married filing separately, or taxpayer living abroad). The form itself does not restate thresholds; consult the November 2012 Instructions to Form 8938 for category-specific limits.
Generally, filing requirements thresholds range from $50,000 to $600,000, depending on filing status and residency. These thresholds differ from Section 6038D requirements and Financial Crimes Enforcement Network reporting under separate regulations.
2. Classify Filer Type and Mark Correct Box (2012 Form Structure)
Check the appropriate filer category: Specified individual with marital status subboxes for married filing jointly, married filing separately, or other individual status.
Although the form includes checkboxes for specified domestic entities (partnership, corporation, trust), these entity types were not required to file for tax year 2012 under the filing requirements applicable that year.
3. Report All Foreign Deposit and Custodial Accounts in Part I
For each Foreign Bank and Financial Accounts deposit or custodial account maintained at a foreign financial institution, complete:
- Account number
- Maximum value during 2012
- Institution name and address
- Currency information
Mark checkboxes if the account was opened or closed during the 2012 tax year, jointly owned with spouse, or had no tax item reported in Part III. Attach continuation sheets for multiple Foreign bank accounts using an identical line structure.
4. Convert Foreign Currency Values Using 2012 Exchange Rates
If the account or asset is denominated in a foreign currency, specify:
- The currency
- The exchange rate used
- The source of that rate
The November 2012 instructions require the use of the U.S. Treasury Department’s Financial Management Service foreign currency exchange rate for purchasing U.S. dollars, unless no such rate is available. Document all currency conversions, using the exchange rate as of the last day of the tax year for determining maximum values.
5. Report Other Foreign Assets in Part II with Entity or Issuer Information
Describe each non-account asset, including stock in Foreign corporations, interests in foreign partnerships, foreign trust holdings, foreign estate interests, bonds, and specific contracts with foreign counterparties.
Assign an identifying number and record the maximum value using the 2012 Part II checkbox ranges:
- $0–$50,000
- $50,001–$100,000
- $100,001–$150,000
- $150,001–$200,000
Or specify the exact amount if exceeding $200,000. Include date acquired or disposed of, if applicable, during 2012.
6. Link Foreign Entity Details for Part II Stock or Interests
If Part II asset is stock or interest in a foreign entity, such as Foreign corporations, foreign partnerships, foreign trust arrangements, or foreign estate holdings, complete Part II line 7 with:
- Entity name
- Entity type (partnership, corporation, trust, or estate)
- Complete mailing address, including city, province or state, country, and postal code
This separate reporting pathway applies specifically to entity holdings.
7. Report Issuer or Counterparty Information for Non-Entity Part II Assets
If Part II asset is not a foreign entity interest (examples include foreign bonds, derivatives, insurance contracts, or notes issued by foreign persons), complete Part II line 8 with:
- Issuer or counterparty name
- Type (individual, partnership, corporation, trust, or estate)
- U.S. or foreign status
- Complete address
Mark whether the information provided is for the issuer or the counterparty.
8. Reconcile Tax Items in Part III to Original Tax Returns
For each asset category reported in Parts I and II, list applicable tax items, including:
- Interest
- Dividends
- Royalties
- Other income
- Gains or losses
- Deductions
- Credits
Include amounts and the original tax return form and line number where reported. Ensure Part III reconciles with Form 1040, Schedule C, or other applicable returns filed for 2012. If no tax item applies to an asset, mark the appropriate checkbox.
9. Identify Excepted Assets in Part IV
If you filed Form 3520, Form 3520-A, Form 5471, Form 8621, Form 8865, or Form 8891 reporting specified foreign financial assets, check the corresponding box in Part IV and indicate the number of forms filed.
Assets reported adequately on these forms—such as foreign trust interests reported on Form 3520, Foreign corporations reported on Form 5471, or foreign partnerships reported on Form 8865—need not be duplicated on Form 8938. However, you must still include the value of these excepted assets when determining whether you meet the filing requirements threshold.
Part IV serves as a cross-reference mechanism to prevent duplicative reporting while maintaining threshold calculation accuracy under Section 6038D.
10. Mark Amended or Supplemental Status if Applicable
If filing an amended or supplemental Form 8938 for 2012 after initial filing, check the appropriate box immediately above Part I and attach it to the amended 2012 return. This checkbox was introduced in the form’s initial release and continues in the November 2012 version.
11. Prepare Continuation Sheets for Multiple Accounts or Assets
For more than one Foreign bank account deposit or custodial account at a foreign financial institution, or more than one other foreign asset (such as multiple Foreign corporation holdings, foreign partnership interests, or foreign trust stakes), attach separate continuation sheets with identical line structure.
Ensure all continuation sheets reference the 2012 tax year and maintain the same format as the main form pages.
12. Attach Form 8938 to 2012 Tax Return and Confirm English Language and USD
File Form 8938 (November 2012) with your complete 2012 tax return by the due date, including extensions. Verify all information is in English, and all amounts are stated in U.S. dollars with currency conversion rates documented where applicable.
Form 8938 cannot be filed separately and must accompany the annual return to satisfy filing requirements.
Year-Specific Regulatory Updates for 2012
Form 8938 was created by the Hiring Incentives to Restore Employment (HIRE) Act, enacted in March 2010, which established reporting requirements under Section 6038D for tax years beginning after March 18, 2010. Tax year 2011 was the inaugural filing year, with returns filed during the 2012 filing season. The November 2012 form represents the second year of this reporting requirement and reflects stable final guidance following the initial release of the December 2011 form.
The November 2012 Instructions confirm that specified foreign financial assets reported on Form 3520, Form 3520-A, Form 5471, Form 8621, Form 8865, or Form 8891 are excepted from duplicative reporting on Form 8938. However, their values must still be counted toward the filing requirements threshold determination. This coordination prevents double reporting while ensuring compliance with Foreign Bank and Financial Accounts disclosure obligations and coordination with the Financial Crimes Enforcement Network.
No COVID, ACA, TCJA, ARPA, or EIP reconciliation provisions apply to Form 8938 in 2012. This form addresses only foreign asset reporting under FATCA authority and operates independently of other tax compliance requirements.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
