Do I need to file form 8938 if I own shares in a foreign private company?

[einholen]

According to the latest investment round's valuation, my share is worth more than the reporting threshold for form 8938. The company doesn't do US-compliant fair market value valuations, however, and according to their country's tax authority, fair value per share is much lower than what investors pay during the round.

The question is, should I rely on their country's tax rules when estimating my share's worth, or on what investors pay per share during a round?

If it's the latter, does the total worth spike after the round is closed, or should I consider it having grown monotonously since the previous round?

[DaveF1006]

Please read this IRS link, for information regarding filing 8938. You may use a variety of tools to determine what the valuation is for your share.  We can't really advise you what valuation method to use in order to determine present valuation as this is more of a legal or financial question than a tax question. 

[einholen]

Thanks a lot for taking the time to answer @DaveF1006!

I understand that determining the valuation is hard to advise - I'm working with the company on that.

I read the link you provided, however, and the form itself and I can't figure out whether shares in a foreign private company even fall into such reportable asset category. Would it be reportable as "other foreign assets" in part II and part VI of the form?

[DaveF1006]

i did find this information in an SEC link that might answer your question.  Foreign Private Issuers & Foreign Businesses ... created a new category of issuers called “emerging growth companies, I hope this is of benefit to you.