Considering the heavy penalty on the failure to file the Form 8938, would you ask your client to sign a statement to certify that they have been informed of the filing requirements and that the aggregate amount of their foreign financial assets does not exceed the filing threshold?
-
Last edited by AccTaxMan; 01-14-2013, 07:33 PM. -
Likely would not require statement
While I see your point (I had to deal with several Forms 8938 last year), having your client(s) sign such a statement might be the first step on an unwise slippery slope.
What could be next: "Can you certify, in writing, you did not have some more stock sales?" or perhaps "But I MUST see your marriage license before we can proceed."
The Form 8938 is a somewhat rare bird. I would (if logic means anything!) assume a direct question or two addressed to the client should be sufficient to cover your donkey. If there is some funny stuff showing up on Schdule B, or some unusual Schedule E PTS and/or foreign income, then more probing questions might be necessary. A client who had to prepare Form TD F 90-22.1 might be worthy of a written statement for your files.
Of my several clients with significant foreign income issues (to include having to file Form TD F 90-22.1) only a single client last year had to deal with the Form 8938. Rest assured I DID ask directly, and perhaps more than once
, ALL of those clients about the dollar levels of any foreign accounts.
It will be interesting to see how others may respond to your query!
FE
Comment