Form 8938 - Decision Time

[JohnH]

I'm not in the habit of double-posting the same question on two forums, but in this case I'm making an exception.

A client who is a German citizen has funds in his German retirement system (rentenversicherung), to which he contributed before coming to the US and also while working for his German employer in the US under the "totalization" agreement. Now he has left the German employer and is paying into the US Social Security system. His balance in the German system is assumed to be over the reporting limit, but the IRS chart appears to give him an "out" where it says reporting is not required for funds held as " ‘Social Security’- type program benefits provided by a foreign government."

The total of his only other foreign accounts is well below any of the threshholds. So we are almost ready to file the return and then we discover a couple of web sites (apparently reliable), which advice filing the 8938 anyhow, even if your only foreign accounts are of this type. I assume they are just recommending this as a CYA, but the potential penalty keeps bugging me.

Does anyone have any suggestions on whether or not this client should include the 8938?

[kcjenkins]

I do not have an authoritative cite on this, but I do tend toward the CYA position, just on general principles, John. I really do not see any significant downside, for either the client or you.