# USA Tax Questions



## debbie790 (Dec 28, 2010)

Hi,

I have read: Comparison of Form 8938 and FBAR Requirements

Questions:
1. In Form-8938, do I need to report foreign bank accounts (its a foreign corporate bank account) where I have signing authority but never had any financial interest? I do report them on FBAR but not sure about 8938. The above link says NO, but researched other tax forums and still confused.

2. I have a Canadian RRSP, which I report on Form-8891. Do I also need to report this on: 8938, FBAR?

3. My spouse is a Canadian and we have never had a joint bank/financial account nor joint signing authority. We are thinking of opening a foreign joint bank account to share a single safety deposit box. This requires us to open a joint bank account. We plan to maintain minimum balance in this joint account. Also, all funds in this joint account will be sourced from my other bank account, hence my spouse will never do any transaction nor source any funds into this account. 

a. Does he now have to report all his foreign bank accounts to IRS?
b. Is my spouse at a risk of exposing all his foreign bank accounts to IRS?

Thanks
Debbie


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## Bevdeforges (Nov 16, 2007)

To answer your questions briefly and simply:

1. If the IRS site says not to report them on the 8938, then don't. Actually, the 8938 is a form that you file along with your US income tax returns. If you don't have to file an income tax return, then you have no need of filing a form 8938 at all - even if you have "certain financial assets" well over the threshold. 

Also, check the requirements for filing the 8938 in the first place. the filing threshold for those living outside the US is significantly higher than what appears on that chart. You don't need to file the form unless you have at least $200,000 in reportable assets.

2. We have lots of folks here with RRSPs - I'll defer to them.

3. a. No. If you're filing separately, you will have to report the new joint account on your FBAR filing, but he has no reporting obligation to the IRS unless he has income sources in the US. In theory, I suppose you could only report half of any interest from the joint account (regardless of the source of the funds), but unless it's enough to tip you into having to pay US taxes, you might as well just declare the income from that account as is. 

3. b. No. Certainly not if you're filing married, filing separately. You only report income in your own name - and on the bank accounts, (i.e. the FBAR filing) those accounts where you have a signature interest. 
Cheers,
Bev


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## debbie790 (Dec 28, 2010)

Bevdeforges said:


> To answer your questions briefly and simply:
> 
> 1. If the IRS site says not to report them on the 8938, then don't. Actually, the 8938 is a form that you file along with your US income tax returns. If you don't have to file an income tax return, then you have no need of filing a form 8938 at all - even if you have "certain financial assets" well over the threshold.
> 
> ...


8938 thresholds:
I file Married filing separately and living abroad, I become eligible for 8938 if sum is 200K+ on Dec31 OR 300K+ (any time during the year). Do I include my RRSP amount when summing?

Also, in FBAR I used IRS exchange rates, now for 8938 do I use the same IRS rates or Treasury rates? IRS rates are usually lower than Treasury because Treasury is the spot rate on Dec31 vs IRS is average annual rate.

Thanks


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## Bevdeforges (Nov 16, 2007)

I really don't know much (i.e. "anything") about RRSPs so we're going to have to flag down someone who does. But as far as the exchange rates you use for your income tax forms (including the 8938) or for the FBAR, you are free to use any publicly available rate - IRS (which is an average for the year), the Treasury rate (though technically you should use the spot rate for the date of the transaction or balance you're reporting) or one of the FX rates published online (again, with the stipulation that you either use a year average or the spot rate on or near the date of the transaction).
Cheers,
Bev


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