FBAR and Form 8938
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
Filing one does not satisfy the other, and signature authority can matter for FBAR even without ownership.
A tax-practice scenario
A taxpayer owns foreign securities and can sign on an employer's foreign account. Test both regimes item by item.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Applying Form 8938 thresholds to FBAR or excluding accounts held through an entity without analysis.
Turn the rule into recall.
Maintain separate FBAR and Form 8938 worksheets and reconcile them before filing.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.