If you have accounts in Taiwan or another country, list each account and its highest value during the year. A cross-border tax professional can determine whether U.S. reports such as FBAR or Form 8938 are required.
TSMC-specific foundation
Taiwan accounts can require U.S. reporting even when no money moves
A U.S. person generally has an FBAR filing requirement when the aggregate value of foreign financial accounts exceeds $10,000 at any time during the year and the person has a financial interest in or signature authority over the accounts. The threshold is across accounts, not per account. Form 8938 is a separate income-tax-return form with different thresholds and asset definitions.
IRS FBAR guidance says a U.S. person must file when they have a financial interest in or signature authority over foreign financial accounts and the aggregate value exceeds $10,000 at any time during the year.
That threshold is not per account. Several smaller Taiwan accounts can combine into a filing requirement.
A TSMC transferee can become a U.S. tax resident through immigration status or the substantial presence test. The exact arrival date and travel history matter.
Residency status also affects whether worldwide income is reportable on the U.S. return. This is a tax professional's domain, but the financial inventory should be ready.
How the pieces interact
Separate FBAR, Form 8938 and income-tax reporting
A TSMC transferee may have Taiwan bank and brokerage accounts, pension or labor-retirement interests, insurance, family signature authority or business interests. Some items may be reportable on one form but not another, and foreign funds can have specialized U.S. tax treatment. Closing an account during the year does not erase its earlier maximum value or income.
Form 8938 is filed with the federal income tax return when specified foreign financial assets exceed applicable thresholds. The FBAR is filed separately through FinCEN's system.
A person may need one form, both forms or neither, depending on status, asset type and values. Do not assume an FBAR replaces Form 8938.
Preserve year-end statements, maximum-value records, account numbers, ownership details and income records. Closing an account does not erase reporting history for the year.
An advisor familiar with TSMC transferees can organize the account map for a qualified cross-border tax professional.
Put the guide to work
Build the foreign-account inventory before filing season
Keep legal ownership, account number, institution, type, maximum annual value, year-end value, income and currency-conversion support in one file. A cross-border tax professional should decide the forms; the employee's job is to make the inventory complete and timely.
Use the sequence below as preparation, not as individualized advice. Current TSMC documents control employer benefits, and qualified tax or legal professionals should confirm decisions in their areas.
- Determine U.S.-person status for the year
- List every non-U.S. account and signature authority
- Capture maximum and year-end values
- Identify income and underlying foreign investments
- Review FBAR, Form 8938 and return reporting separately
- Taiwan bank accounts
- Brokerage accounts
- Employer or family signature authority
- Foreign retirement or savings accounts
Frequently asked questions
Questions employees ask next
What is the FBAR threshold?
IRS guidance says the FBAR threshold is aggregate foreign financial accounts exceeding $10,000 at any time during the calendar year.
Do TSMC employees need FBAR if they still have Taiwan accounts?
Possibly. It depends on U.S. person status, account type, authority and aggregate maximum values.
Is Form 8938 the same as FBAR?
No. Form 8938 and FBAR are separate reporting regimes with different filing mechanics and thresholds.
Primary sources
What this guide is based on
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