Glasgow Girl

Because I travel a lot, there are times I want to get the FBAR filed asap and I use the rate on Xetrade.com for both the FBAR and Form 8938. Technically incorrect I know, but it makes a difference of a fraction of a percentage point on the overall values. I don’t lose any sleep over it. I think they are a lot more interested in those that do not file. Using the same rate on both forms means that I am declaring the exact same values which makes it easier for me. Never been challenged in many years of completing these forms. Like I said, technically incorrect, but I usually round the rates up a little so I am usually over reporting.

theOAP

I’m not convinced either a filed 8938 or the FBAR are ever reviewed if the totals are less than some magic number determined by the IRS, or in case of a serious audit. A lack of either if required would be the real problem, if discovered. If the currency exchange rate can be verified and is consistently used, all amounts in the original currency can be determined. The instructions say, on page 8, most should use the Treasury rate but the form offers a chance to list another rate. 8938 asks if the the Treasury rate was not used, what was the rate, and source of the rate.

Good news, from 2022 the 8938 form has become continuous year to year and not specific to one year. My 8938 is 16 pages so from this year I can copy the previous years forms, only changing the amounts, as long as they are the same accounts, like FBAR. The time saving will be appreciated.

Glasgow Girl

[QUOTE=theOAP;13168251]I’m not convinced either a filed 8938 or the FBAR are ever reviewed if the totals are less than some magic number determined by the IRS, or in case of a serious audit. A lack of either if required would be the real problem, if discovered. If the currency exchange rate can be verified and is consistently used, all amounts in the original currency can be determined. The instructions say, on page 8, most should use the Treasury rate but the form offers a chance to list another rate. 8938 asks if the the Treasury rate was not used, what was the rate, and source of the rate.]

Good news, from 2022 the 8938 form has become continuous year to year and not specific to one year. My 8938 is 16 pages so from this year I can copy the previous years forms, only changing the amounts, as long as they are the same accounts, like FBAR. The time saving will be appreciated.[/QUOTE

I agree, I am pretty sure these forms go into an electronic filing system and are never normally looked at by a human, unless as you say under audit, or there is a discrepancy between what has (or has not been) declared on the relevant forms, and what is reported by financial instutions worldwide. That is where those not filing the appropriate forms should be concerned. Almost all worldwide financial institutions report balances and income to the IRS now for anyone known to be a US person and it is very easy to match up this information with the information reported on an FBAR and a Form 8938. Anyone resident in the US using an overseas address with foreign financial institutions is providing evidence for willful non compliance which can incur a fine of up to 50% of the highest aggregate account value for each year of non compliance. Yes, they have to be caught but there are other ways that overseas investments are detected, and putting lifetime savings at the risk of being wiped out and then some, is foolish.