If I have a credit card issued by TD canada trust and my total foreign asset (most of them are RRSPs) exceeds the threshold, do I need to include this canadian credit card on my 8938?
If I forget to report the credit card, for how long could IRS come back to me? Three years?
report foreign credit card on the 8938
Moderator: Mark T Serbinski CA CPA
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
Yea....like I said...i am not sure what type of credit card you have...sounds like a prepaid card (?).
I can only tell you what I did....i have never had a positive balance on my card, nor has the bank ever reimbursed me, or put any value on my card, therefore it has never had a positive balance.
For that I did not list my credit card on my 8938 nor my FBAR as I never looked at it as a financial asset.
Again, Nelsona is the one to clarify this, and I would go with whatever he/she says.
I can only tell you what I did....i have never had a positive balance on my card, nor has the bank ever reimbursed me, or put any value on my card, therefore it has never had a positive balance.
For that I did not list my credit card on my 8938 nor my FBAR as I never looked at it as a financial asset.
Again, Nelsona is the one to clarify this, and I would go with whatever he/she says.
As for the penalty...i believe it is 10k for failure to file the form only.
You also have to remember that this form is brand new...when I called the IRS for questions or clarifications, they basically told me in no uncertain terms that they were not trained on this form and would not entertain any questions regarding this form....(I know...hard to believe isn't it).
You also have to remember that this form is brand new...when I called the IRS for questions or clarifications, they basically told me in no uncertain terms that they were not trained on this form and would not entertain any questions regarding this form....(I know...hard to believe isn't it).
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
For example, just the regular credit card with some percent of cash back when you make purchase. The cash back points accumulated and card company pay them once the cash back amount exceeds the max value.
It seems this type of cash back is not treated as income to IRS.
I have canceled all my canadian credit card.
but I might have some sear card opened decade ago while the sears might still keep it open for what ever reason.
In case, they for what ever reason, give me some points which make the card balance become positive, what should I do?
For the goodness, I don't even know where are those sear card now, I might just lost them. But later on, for the FACTA, they report it to IRS and put me into some night mare heavenly high penalty.
It seems this type of cash back is not treated as income to IRS.
I have canceled all my canadian credit card.
but I might have some sear card opened decade ago while the sears might still keep it open for what ever reason.
In case, they for what ever reason, give me some points which make the card balance become positive, what should I do?
For the goodness, I don't even know where are those sear card now, I might just lost them. But later on, for the FACTA, they report it to IRS and put me into some night mare heavenly high penalty.
Well....FATCA is delayed until 2014...Canada might MIGHT sign an IGA with the United States...and besides, FATCA is not going to look at account balances below 50k, especially if they were open before implementation.
Sears Canada is not a financial institution so I wouldn't even worry about it...as they have no reporting responsibilities.
Sears Canada is not a financial institution so I wouldn't even worry about it...as they have no reporting responsibilities.
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
Thank you very much mach.
I heard the same thing from the hotline last year after almost 1.5 hours on the line waiting.
They just gave some new form with limited instruction and announce they will make huge ($10k is huge to me) penalty if you don't file them 100% accurate. What a torture!
Besides the credit card, I am also wondering about
1. If I exchange some canadian dollar into u.s. dollar, do I need to report the amount I exchange as foreign asset on the form 8938 ?
I've reported both my canadian account and my us dollar account that hold these cash. But did the exchange activity itself need to be reported seperatedly on the form 8938?
2. My gradma pass away and left a house behind. My name is in her will with my other relatives for that house.
Do I need to report that house? The house is still under my gradma's name since my other relatives do not agree with the will and there are lawsuit going on.
Am I a "beneficiary of foreign estate"
I heard the same thing from the hotline last year after almost 1.5 hours on the line waiting.
They just gave some new form with limited instruction and announce they will make huge ($10k is huge to me) penalty if you don't file them 100% accurate. What a torture!
Besides the credit card, I am also wondering about
1. If I exchange some canadian dollar into u.s. dollar, do I need to report the amount I exchange as foreign asset on the form 8938 ?
I've reported both my canadian account and my us dollar account that hold these cash. But did the exchange activity itself need to be reported seperatedly on the form 8938?
2. My gradma pass away and left a house behind. My name is in her will with my other relatives for that house.
Do I need to report that house? The house is still under my gradma's name since my other relatives do not agree with the will and there are lawsuit going on.
Am I a "beneficiary of foreign estate"
The penalty to failure to file the form is 10k. there is also a penalty/fine of 40% for inaccurate tabulation (i think anyway) ie: if you tabulate you have 10k in an account, and have 15k, then there is a 40% fine on the 5k...again, i am not totally accurate on this.
you wrote;
If I exchange some canadian dollar into u.s. dollar, do I need to report the amount I exchange as foreign asset on the form 8938 ?
I don't know what you mean by this as all values have to be converted into USD.
Although you do not have to list your principle residence on form 8938, in your situation there is most definitley going to be paperwork involved in the house as you were the beneficiary.
My suggestion is to wait for a bit and keep checking back on this forum to see if Nelsona chimes in.
Nelsona will be able to clarify things better than I.
you wrote;
If I exchange some canadian dollar into u.s. dollar, do I need to report the amount I exchange as foreign asset on the form 8938 ?
I don't know what you mean by this as all values have to be converted into USD.
Although you do not have to list your principle residence on form 8938, in your situation there is most definitley going to be paperwork involved in the house as you were the beneficiary.
My suggestion is to wait for a bit and keep checking back on this forum to see if Nelsona chimes in.
Nelsona will be able to clarify things better than I.
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
The 40% accuracy seems to apply to the tax you owe for the unreported asset instead of the value of the asset.
AccuracyRelated
Penalty
If you underpay your tax as a result of
a transaction involving an undisclosed
specified foreign financial asset, you
may have to pay a penalty equal to 40
percent of that underpayment.
Where is the "inaccurate tabulation " from ?
AccuracyRelated
Penalty
If you underpay your tax as a result of
a transaction involving an undisclosed
specified foreign financial asset, you
may have to pay a penalty equal to 40
percent of that underpayment.
Where is the "inaccurate tabulation " from ?
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newbie12345
- Posts: 54
- Joined: Mon Jul 23, 2012 1:43 am
I am not a beneficiary of a trust.
It is a house. My grandma owned it. One of my uncle lives in it right now.
When my grandma passed away, she left a WILL that all the property under her name will be shared by my uncle, my aunt my mother and me( I was her favorit grand daughter)
My uncle disagree with the will. He said he should be the one that take over the house since only he lived with her and take care of her at her final time.
Do I need to report the house as a "foreign asset" on the 8938?
It is a house. My grandma owned it. One of my uncle lives in it right now.
When my grandma passed away, she left a WILL that all the property under her name will be shared by my uncle, my aunt my mother and me( I was her favorit grand daughter)
My uncle disagree with the will. He said he should be the one that take over the house since only he lived with her and take care of her at her final time.
Do I need to report the house as a "foreign asset" on the 8938?