Revised Instructions for FATCA Reporting
If you have foreign financial assets, be sure to carefully read the new instructions for Form 8938, the form which details foreign financial assets (under FATCA) and which must be attached to your Form 1040 or 1040NR. The link to the instructions is: www.irs.gov/pub/irs-pdf/i8938.pdf
The instructions spell out the thresholds for the reporting requirement, detailed definitions of the financial assets which must be included, rules for valuation of financial assets, and special reporting rules for certain Canadian funds, as well as penalties for non-filing.
Tax year 2015 (filing in 2016) is the second year for which foreign financial institutions will be reporting (under FATCA rules directly or indirectly to the IRS) all foreign financial assets owned by US persons. Since 2014, the IRS has been able to match information on your Form 8938 with information received from foreign financial institutions, so accuracy on your part every year is important.