USD Money Market Account & 8938
Moderator: Mark T Serbinski CA CPA
If anyone can give me any positive direction with this thread i would greatly appreciate it. It seems this is even stumping the Firm that is (trying) to complete my 2011 tax.
Not sure why they should be stumped, but they seem to have to 'check' with someone everytime i ask this question.
I want to take Filo's advice, but also want to make sure i am doing things correctly.
thank you in advance
Not sure why they should be stumped, but they seem to have to 'check' with someone everytime i ask this question.
I want to take Filo's advice, but also want to make sure i am doing things correctly.
thank you in advance
with regards to the shares in the company i work for...i had this same discussion when i filed my FBARs and it was decided that this was nothing more than a 'securities' account.
should be simple and straight forward, and most likely it is....and although i have tabulated the dividend payouts on shedule B and lines 9a,b...i need to know if there is further reporting forms that need to be filled out.
should be simple and straight forward, and most likely it is....and although i have tabulated the dividend payouts on shedule B and lines 9a,b...i need to know if there is further reporting forms that need to be filled out.
OK, in light of all this information, here is my plan of attack and i welcome all comments.
with respect to my USD money market fund, this fund is held at RBC and i was mailed a T3 slip under 'other income'. I will try and fill out the 8621 form for this fund and will tabulate it on part 1 of the 8938 form.
with respect to the shares held by Computershare trust company for the company i work for....i was issued a T5 slip fore 'eligible dividends'. I will tabulate this account on part 2 of the 8938 form and fill out schedule B and place the dividend payout on line 9a.b of my 1040.
i welcome all comments and suggestions.
with respect to my USD money market fund, this fund is held at RBC and i was mailed a T3 slip under 'other income'. I will try and fill out the 8621 form for this fund and will tabulate it on part 1 of the 8938 form.
with respect to the shares held by Computershare trust company for the company i work for....i was issued a T5 slip fore 'eligible dividends'. I will tabulate this account on part 2 of the 8938 form and fill out schedule B and place the dividend payout on line 9a.b of my 1040.
i welcome all comments and suggestions.
@Mach7, about the money market instrument --
OK, even if it's not a bank account, it is an account, so it will still get listed in Part I of form 8938. As to whether it's Deposit or Custodial, I don't think that even the IRS will schmeise you for possibly getting that wrong, as they don't define those terms anyway.
testone's statement that you should report it as a Dividend on Schedule B certainly seems completely reasonable to me.
As far as the 8621 goes, one major issue, so far as I know, is whether submitting an 8621 this year is going to make the IRS slam you for not filing 8621's for previous years. No tax expert on this site is going to answer that question for you. And if you scour the web looking for advice on the 8621, you are going to find many deliberately vague statements like "US persons *may* be obliged . . .", and where there are (somewhat) clearer statements on the 8621, you are going to find contradictory opinions, particularly on which of the three options on the 8621 you can use, what the exact procedure is for using the option you choose, whether you have to backfile 8621's for previous years, if so for how many years, and if so what the traps are in doing the backfiling (are there penalties?, is there back interest?, does one have to a Section-1291 workup for the initial backfiled 8621 before being allowed to do a mark-to-market election for the subsequent backfiled 8621's?). You are not going to find any convincing answers to these questions, and it is quite possible that your accounting firm will not have the answers either. There are people who will not file an 8621 this year because the risks of filing & backfiling it look so bad. But nobody is going to make the decision for you. And the IRS won't help. You are not the only one in this boat; there are many of us.
OK, even if it's not a bank account, it is an account, so it will still get listed in Part I of form 8938. As to whether it's Deposit or Custodial, I don't think that even the IRS will schmeise you for possibly getting that wrong, as they don't define those terms anyway.
testone's statement that you should report it as a Dividend on Schedule B certainly seems completely reasonable to me.
As far as the 8621 goes, one major issue, so far as I know, is whether submitting an 8621 this year is going to make the IRS slam you for not filing 8621's for previous years. No tax expert on this site is going to answer that question for you. And if you scour the web looking for advice on the 8621, you are going to find many deliberately vague statements like "US persons *may* be obliged . . .", and where there are (somewhat) clearer statements on the 8621, you are going to find contradictory opinions, particularly on which of the three options on the 8621 you can use, what the exact procedure is for using the option you choose, whether you have to backfile 8621's for previous years, if so for how many years, and if so what the traps are in doing the backfiling (are there penalties?, is there back interest?, does one have to a Section-1291 workup for the initial backfiled 8621 before being allowed to do a mark-to-market election for the subsequent backfiled 8621's?). You are not going to find any convincing answers to these questions, and it is quite possible that your accounting firm will not have the answers either. There are people who will not file an 8621 this year because the risks of filing & backfiling it look so bad. But nobody is going to make the decision for you. And the IRS won't help. You are not the only one in this boat; there are many of us.
Your company shares held by Computershare --
One thing that scares me about the idea of listing that in Part II of 8938 is that if you decide to check "Trust" as the type of issuer, will that force you to submit a Form 3250, which is regarded as one of the all-time worst forms to fill out?
You have an *account* at Computershare. It seems to me that that would allow you to list this item in Part I, which avoids the above issue. And don't use the word "Trust" in the name of the financial institution. Just call it Computershare.
One thing that scares me about the idea of listing that in Part II of 8938 is that if you decide to check "Trust" as the type of issuer, will that force you to submit a Form 3250, which is regarded as one of the all-time worst forms to fill out?
You have an *account* at Computershare. It seems to me that that would allow you to list this item in Part I, which avoids the above issue. And don't use the word "Trust" in the name of the financial institution. Just call it Computershare.
A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or another financial instrument.
[url=http://www.ukmoney-solutions.com]Debt management[/url]
[url=http://www.ukmoney-solutions.com]Debt management[/url]