Trying to determine if I need to report under FATCA

USC here.

I used to work for a global manufacturing company headquartered in France but with facilities around the world including the U.S.

At the time the management, including me, we're allowed to invest in the company, with the potential of capital gains many years later.

There's no stock/share trading taking place.
There's no financial account in my name although it is documented that I have a specific share in the company.
No physical share certificates.
No dividends.
No taxable events.
No distributions.
No periodic valuation.
I own less than 10%
I'm not with the company anymore.
I will be reimbursed, along with Capital Gains when the company is privately sold in a few years.

I have asked two tax professionals already and each one is unsure if this needs to be reported under FATCA.

I would value any opinions.

(For example, if I bought shares in Sony or Samsung...would that need to be reported under FATCA as a foreign asset?)

I've been following your posts on BE. If I understand correctly, the manufacturing company has been sold twice, the last time to a venture capital group who owns more than 50%. You have 'rolled over' your original ownership, and still hold an interest in the entity. Your interest is greater than $50,000. Your interest is less than 10% of the entity.

I've not understood several of your comments in regards to their applicability to the situation. TMC (Toyota Motor Company, the parent company) owns Toyota. TMS (Toyota Motor Sales) owns the US manufacturing operation (or did, I have no idea of the structure today). For comparison sake, do you own TMC (in Japan) or TMS (in the US)? Where is the venture capital company based? Is it a foreign financial institution (I would guess not)? Is your ownership an investment (I would think yes if you intend to have capital gains)? It appears you don't own shares, you own (a part of) the company.

You note "it is documented that I have a specific share in the company". When you dispose of the ownership, will it be reported to the IRS? If it is a foreign entity, then I don't know why you would not report it on 8938 if you will report it eventually to the IRS.

I am NOT a professional, and am in no way anyone you would want to trust to give you in any way a sensible answer. This is only my opinion, as a casual observer, based on what you have presented. I take the definiton of "Specified Foreign Financial Assets", under 2(b) "Any interest in a foreign entity" at face value.

I think that this comes under the category of "don't think too much just file the form".

People have been asking similar questions about FBAR for a while and the advice is usually to file as a prophylactic. As the 8938 is also just an informational form why not just file if you are unsure.

Thanks...just worried that I'll be hit with a $10,000 penalty for not reporting. I'm currently unemployed and that would be hard.

In addition Form 8938 asks for information that I cannot obtain, like value of investment.

In addition Form 8938 asks for information that I cannot obtain, like value of investment.

Yes, that thought crossed my mind whilst reading all your posts. Also, are additional (or alternative) forms required.

When it comes time to declare the gain, you could guess as to how the IRS might see the entity and your asset. It would be best to hire a qualified professional now to come up with a reasonable arguement, but that is going to cost an amount you may not wish to spend at this time.

You do not want to be seen at the time of disposal as having willfully not declared the asset. IMHO, file 8938 and make a reasonable attempt to value the asset. The IRS will respond if they disagree, but at least you've declared the asset and have proved you're not trying to hide assets abroad. Has a taxable event already happened? I'll leave that to your discussions on BE.

This situation is a prime example of the compexity and uncertainty that has been created for average individuals who have tried in the past to make reasonable investments for their future as a result of living/working or investing outside the US. It's a not so subtle attempt to force Americans to invest only in the US.

If the company is still based in France, and with the amount of your possible gain, you may wish to clarify your position as regards d'impôt sur le revenu .