Question Re contracts on Form 8938

3 posts in this topic

Hi guys,


I am somewhat confused about the form 8938 requirements. Accounts etc. are clear, but they list "instruments and contracts" as well. Obviously, not any contract with a foreign partner can be meant (or should I report every visit to a restaurant? ), and it seems nobody reports rental contracts, for eaxmple.


Two things especially I am wondering about. Imagine this situation: Not really expat in Germany (but German expat in the us):

Let's say my parents visit their child in the US for a vacation. They travel around. Some costs are paid by the kid, some by the parents. In the end, the parents transfer, say, 4000$ for their share via wire transfer from their German account to the kid's US account. Is this a contract or something else which needs to be reported?


Or: Somebody living in the US (with reporting requirement fullfiled) travels to a different country to give a talk or attend a conference (researcher). The visited institute reimburses the person for (part of) the ticket and arranges local lodging for the time. Is that something which needs to be reported?






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Rest easy.


The reference is not to all instruments and contracts but to a "financial instrument or contract" and, specifically, those with a non-US issuer or counterparty. An example might be a futures or options contract or the like.


None of the activities/transactions described in your post falls within the definition of a financial instrument or contract for purposes of reporting using Form 8938.


Remember:  FATCA (Form 8938) requires reporting of specified foreign ASSETS not simply any transaction with a GF (Godless Furriner) involving money (although we're getting there.)  One of these days some dork in the bowels of the Treasury Department is going to opine that the chit you get from the dry cleaner to reclaim your laundry is a reportable foreign "financial account" for purposes of the BSA or FATCA.




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