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We contacted Richard A. Reed, CPA, M. Tax, of Lancaster
& Reed to get an update on the new so-called “Shadow
FBAR” requirements for the 2011 tax year.
In its continuing quest to reign in what it perceives as abusive offshore
financial transactions, the IRS has generated yet another form to be filed by
those with significant offshore financial interests in additional to the FBAR
(Form TD F 90-22.1). New for the 2011 tax year is Form 8938 Statement of
Specified Foreign Financial Assets dubbed the “Shadow FBAR”. It requires
duplicative filing of the FBAR information but goes well beyond the
definition of reportable financial accounts required by the FBAR. For the
Shadow FBAR, reportable Specified Foreign Financial Assets (SFFA) include
not only foreign financial accounts but items such as foreign stocks, bonds,
partnership interests, hedge funds, financial instruments or contracts that
have an issuer or counterparty that is not a U.S. person. Unlike the regular
FBAR, these investments don’t have to be in a financial institution in order
to be reportable. This new form has many folks up in arms...particularly U.S.
taxpayers that live abroad. SFFAs sitting in one’s safe at home or safety
deposit box are now reportable. Granting limited relief, the threshold for
reporting is higher on the Shadow FBAR with single and married filing
separately required to file on SFFAs that exceed more than $50,000 on
the last day of the year or more than $75,000 at any time during the year.
For married filers, the threshold is $100,000 and $150,000, respectively.
For those with significant offshore holdings, this new requirement will
greatly add to the time and cost of filing those annual income tax returns.
Failure to file Form 8938 can result in significant penalties. For additional
information, visit IRS.gov or contact Richard A. Reed of Lancaster & Reed,
LLC, at 305.361.1014, Ext. 15, or visit Lancaster-CPAS.com.
32 Elite Office
Truly timeless interior design for your office doesn’t have to mean
boring and predictable. Here are a few pieces you might consider
incorporating, each one of which has truly stood the test of time.
The Cavour Desk was created
by Carlo Mollino in 1949. It’s
manufactured today in Italy
based on Mollino’s original
specs with natural or wenge-
stained oak topped with plate
glass top; $11,690, Zanotta.IT.
Michele DeLucchi’s Tolemeo Desk Lamp won the
Compasso d’Oro Award in 1989 for its elegant
blend of design and engineering. Today, this iconic
piece is available in incandescent or LED versions;
Artemide.US. Dive, Dive!
With the Nine-O Collection, Ettore
Sottsass re-imagined his earlier
work for a surprising client: the U.S.
Navy. The 90-year-old designer had
created the Navy Chair for WWII-era
submarines. This modern take was his
last work; $1,590, Emeco.net.