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virgil
New Member

I have a foreign account <$10000. IRS says I don't have to file Form 8938. If I acknowledge it to TT, it upgrades to Deluxe unnecessarily. Can I just not acknowledge it?

I know I don't need to file an FBAR nor Form 8938. (I've earned no interest on this account, which is worth about $5000) TT faces me with a "yes/no" question about foreign accounts, where if you answer "yes" it automatically requires you to upgrade to Deluxe for Form 8938, even if you say your balance was never $10k. I'm tempted to just say "no", since I know I don't need to file it.

It feels as though TT is forcing me to pay an extra $40 to file a form unnecessarily, or lie on my form. Very frustrated. Does this "no" remain on some account record as proof of a lie, or is it safe to say "no" as in "no, I don't have anything I need to declare"?
4 Replies
CarolC
Level 6

I have a foreign account <$10000. IRS says I don't have to file Form 8938. If I acknowledge it to TT, it upgrades to Deluxe unnecessarily. Can I just not acknowledge it?

I understand what you are asking, however, your tax records need to disclose your foreign bank account even if you are not required to file other financial disclosure forms.  Not reporting this foreign account would be inaccurate.

Here is what the IRS states:

If you have a foreign account you must report this on your tax return.

The taxpayer must disclose whether or not there is a financial interest, or signature authority over, a financial account or trust, in a foreign country.  If your answer is Yes to any of these then this information is reported on Part III of Schedule B.
virgil
New Member

I have a foreign account <$10000. IRS says I don't have to file Form 8938. If I acknowledge it to TT, it upgrades to Deluxe unnecessarily. Can I just not acknowledge it?

So basically if you have any foreign bank account, you have to pay for $60 TurboTax Deluxe? Cool.
kevineger
New Member

I have a foreign account <$10000. IRS says I don't have to file Form 8938. If I acknowledge it to TT, it upgrades to Deluxe unnecessarily. Can I just not acknowledge it?

Yeah this is ridiculous. $60 for Turbo Tax to put 1 check-mark on a form they're already submitting...
atishay78
New Member

I have a foreign account <$10000. IRS says I don't have to file Form 8938. If I acknowledge it to TT, it upgrades to Deluxe unnecessarily. Can I just not acknowledge it?

I faced the same issue and used H&R Block for free. H&R Block did not make me upgrade to the deluxe paid version, but let me use the free version, to report this particular information.

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