Form 8938 Filing Requirement

I am single, reside in Texas and own more than $50K in market value(at 12/31/22) of Canadian gold miners in my Charles Schwab brokerage account.

I also had 1099-B gains from the sale of a different Canadian gold miner and received 1099-DIV dividends from these 2 Canadian gold miners which were subject to 15% foreign tax withholding(Box 7).

Am I required to file Form 8938? I noticed a FATCA Filing Requirement box on Forms 1099-DIV, 1099-INT and 1099-B that was NOT checked on any of these forms. Is this a safe harbor which would tell me in the future that no Form 8938 would be required to be filed so I know what to look for in the future?

Since you are getting IRS forms from Schwab, presumably these are held in a US account? And they trade on US exchanges? If that’s the case, they are not assets held in a foreign account, which is what Form 8398 is designed to report.

The safest harbor would be to not open any accounts in another country, to not purchase any property in another country, and to disclaim any gifts or inheritances that include foreign assets.

AJ

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Thanks for the response. These assets are held in a US account and they do trade on US exchanges…so I wouldn’t be required to file Form 8938 because they are not assets held in a foreign account.

Bear with me on this…because I want to learn. I am also watching other miners that would only trade on say the Toronto exchange. They would meet your test of being held in a US account(I’m a resident of Texas) but not the trading on US exchanges. Purchase, sale & dividends payments would also involve a currency conversion in this instance. Would these securities cause a requirement to file a Form 8938 and/or would they cause Charles Schwab to check the FATCA Filing Requirement box?

Assuming that you purchase them through Schwab (or another US based brokerage), you shouldn’t have to file Form 8938. From Basic Questions and Answers on Form 8938 | Internal Revenue Service (irs.gov)

AJ

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