November 8, 2010 - Phil Hodgen

New Form 8938 – Son of FuBAR is here

Form 8938 (Draft Version 1, Nov 2010) (PDF). This is what’s facing you for the 2010 tax season, possums.

From John Nolan, a fellow tax lawyer in Frankfurt:

Here is the first look at the IRS’s brand new baby.

Looks like they’re going to get it to do double duty and use it for reporting PFICs – and just about anything else that you own that might be foreign and have some value.

Haven’t been able to score a copy of the instructions yet, though.

Those should be really entertaining.

Speaking of FUBAR and entertaining: have you glanced at the comments pouring in on the initial guidance on the new Chapter 4 (Son of QI) reporting requirements?

Not unexpectedly every financial industry wants an exception for their particular financial “product” but what ought to be the canary in the mineshaft for the IRS: major tax allies like Japan, Australia are seeking blanket exemption for their financial institutions. Why? Because they are tax allies and they don’t want to pay the cost of compliance.

Guess who else asked for blanket exemption on the grounds that they too were a squeaky clean tax ally of the USA?

The Cayman Islands.

Now ain’t that a hoot!



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