Last week at my other blog: Foreign account reporting; E-file fears grow
Saturday, February 11, 2012
Did you e-file this season? More of us are doing so, but apparently with more trepidation. And speaking of fear, owners of foreign assets have more information to report to the IRS or face the consequences.
Both of these issues were discussed last week at my other tax blog.
A survey conducted by Ipsos for the online tax filing company Taxsoftware.com found that most Americans are concerned that their personal and financial information might be compromised by efiling state and federal tax returns. The biggest worry was transactions via smartphones.
That's not good news for tax software makers who are expanding to more mobile devices. Neither is the IRS happy about such anti-electronic filing attitudes, since it just rolled out an upgraded IRS2Go smartphone app and wants us all to eventually e-file.
Some foreign account owners also are getting some unwelcome news this filing season. They must complete more paperwork, Form 8938, to let Uncle Sam know of their foreign holdings.
During an IRS webinar on new tax laws this filing season, Lynn Schmidt, an enrolled agent adviser for Lynco Financial & Tax Services in Winter Haven, Fla., noted that while the old foreign assets standby Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts or FBAR, is basically an information form that has to be filed by June 30, new Form 8938, Statement of Foreign Financial Assets, is part of your tax return.
Taxpayers who should file Form 8938 but don't could face a $10,000 fine.
You can check out my new posts at Bankrate Taxes Blog on most Tuesdays and Thursdays. And if you happen to miss them there, you can find a wrap-up here each Saturday.
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