# Form 8938 "Accountn closed during tax year"



## powerdrw (Mar 31, 2019)

Hi there! How do you folks suggest reporting accounts closed during the tax year on 8938? Should we report and mark it as "Account closed during tax year"?


I've reported FBAR and 8938 (FATCA) (I'm an immigrant). Last year (2018) I closed 3 accounts A,B,C that I haven't used for a long time.

I still reported the closed A,B,C on my 2018's 8938 and FBAR on my 2018 return. And marking A,B,C as "Account closed during tax year".

However, I've heard that closing an account is something that will trigger the IRS to scrutinize more, so marking those accounts as "Closed during tax year" on 8938 will significantly increase my chance of being audited. 

1. Is that real? Marking"Account closed during tax year" on 8938 really gonna catch IRS's attention? Should I instead still report them but not marking them as closed?

2. This just came across my mind: while I have filed my accounts on FBAR and 8938 on my end, my original country banks don't know that I moved to US now and didn't ask for W8BEN/W9 at all, so I believe they didn't report any account to IRS. Is this a big trouble? I meant, it really didn't come across my mind that I need to voluntarily tell those banks (I opened accounts with them many years before I came to the US....). Is this a problem? Should I call the banks and ask for W9 to sign... feels silly tho. Could I just leave it as is since I have reported properly on my end anyways..?



Thanks, I'm a bit anxious and hope some can provide insights to the 2 questions here...


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## byline (Dec 5, 2011)

According to this, you report the account in the tax year during which it was closed, but not after that. I would assume the same is true for Form 8938. I can't imagine that closing an account would prompt an audit, since people open and close accounts all the time.


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## powerdrw (Mar 31, 2019)

Yea the audit is not a verified story, more like a rumor from a friend who seems to have some more experience in this area. 

I was just being paranoid so wanted to ask folks since I haven't done this before, was afraid of the amount of paperwork if actually gets audited. Guess I was worried about it too much. I will just make them as "closed during tax year on 8938". Thanks.


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## sam123larry (Oct 9, 2020)

Hi. I am new to this forum and I learned a lot from people's tax situations. 

This year the balance in my bank account will exceed the threshold defined by IRS and it seems that I will need to file form 8938. I have been filing FBARs along with my returns (as an expat living abroad for many years) but this is the first time I have to deal with form 8938. Is it true that this increase the chances of being audited for filing this form and for the first time?


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## Moulard (Feb 3, 2017)

Short answer is no. 
Slightly longer answer is that the risk of an overseas filer being audited is exceedingly close to zero.


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