Singaporean CPF & Form 8938 FATCA

Singaporean CPF & Form 8938 FATCA

Singaporean CPF & Form 8938

Singaporean CPF & Form 8938: As far as the IRS is concerned, the Singaporean CPF (Central Provident Fund) is reportable on the Form 8938. The CPF is considered a type of Foreign Asset for Form 8938 purposes, which must be reported to the Internal Revenue Service. Since there is no tax treaty between the US and Singapore, the CPF is generally taxable as well. In other words, while it is tax deferred in Singapore, there is no tax treaty between the U.S. and Singapore — and this further complicates the analysis.  From a tax perspective, there is the issue of the contributions to the fund; growth within the fund, and distributions out of the fund. While different tax professionals may take contrasting approaches to the U.S. taxation of Singapore CPF, the Internal Revenue Service has issue memoranda in the past on the tax treatment of a CPF, which determined the income is taxable.

While we have a much more detailed analysis on the U.S. Taxation of CPF, but let’s focus on FBAR:

CPF & Form 8938 (FATCA) Reporting 

Even though the CPF is comprised of three (3) different parts, the entire CPF’s maximum account value is generally reported together on the Form 8938 each year that the person’s annual aggregate total of all their foreign accounts combined exceeds  the threshold for filing (Unlike the FBAR, the 8938 threshold varies based on filer’s status)

CPF Amnesty for Missed Prior Reporting

The Internal Revenue Service’s Form 8938 Amnesty Programs are programs developed by the Internal Revenue Service to assist Taxpayers who are already out of compliance for non-reporting.

Some of the more common programs, include:

Can I Just Start Filing Form 8938 This Year Instead?

No, unless the current year is the first-year you had an Form 8938 Reporting requirement.

If you had a prior year reporting requirement, but only begin to start filing in the current year (Filing Forward) it is illegal. In the world of offshore disclosure, this is referred to as a Quiet Disclosure.

The IRS has warned taxpayers that if they get caught in a Form 8938 Quiet Disclosure situation, it may lead to willful penalties and even a criminal investigation by the IRS Special Agents.

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