What does Form 8938 report?

Form 8938 is specifically designed to report specified foreign financial assets held by U.S. taxpayers. This includes assets such as foreign bank accounts, foreign stocks, foreign partnership interests, and other foreign financial instruments. The form is a part of the requirements under the Foreign Account Tax Compliance Act (FATCA), aimed at increasing compliance among U.S. taxpayers with offshore investments.

Reporting these assets is crucial for the IRS to monitor unreported foreign income and prevent tax evasion. Taxpayers must file Form 8938 if the value of their specified foreign financial assets exceeds certain thresholds, which vary based on filing status and residency.

This focus on foreign financial assets distinguishes Form 8938 from the other options. For instance, domestic investments, interest income, and capital gains from stock sales are reports covered under different forms and regulations, such as the Schedule B and Schedule D forms in U.S. tax returns. Thus, the uniqueness of Form 8938 lies in its specific purpose of disclosing foreign financial assets exclusively.