Form 8938 and Specified Foreign Financial Asset Reporting for Alternative Funds under §6038D (PricewaterhouseCoopers)

February 2012

KEYWORDS: IRS, Internal Revenue Service, Form 8938, Statement of Specified Foreign Financial Assets, Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, FBAR, Hedge Fund Regulation, Hiring Incentives to Restore Employment Act, HIRE Act, specified individuals, foreign financial institution, financial institutions, financial account, NAV reports

Authors:

James Cameron, Puneet Arora, Kevin Ciavarra, Candace Ewell

Organizations:
  • PricewaterhouseCoopers

Summary:

In December 2011, the IRS issued a final version of Form 8938, Statement of Specified Foreign Financial Assets, along with instructions. Form 8938 is devised to facilitate the SFFA reporting requirements of §6038D, and requests information on account owner, type and value, among other items. The reporting is similar, but more detailed, than that currently done on Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (also known as FBAR).

While the impact of SFFA reporting on funds themselves is currently minimal, investors may be asking funds for additional information to complete their required filings. This document contains a brief overview of the current filing requirements and the type of assets that are required to be reported.

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