Comment on tax forms......8938 springs to mind

Here is a link to where you can comment on IRS forms and instructions. It's not for tax questions, but specifically for feedback on IRS forms. So as the 8938 is as clear as mud maybe a few commenst are warranted

http://www.irs.gov/formspubs/page/0,,id=10178,00.html

Here's what I wrote re 8938

"The instructions and options under Part II are not clear when the foreign financial asset is a foreign employer sponsored retirement plan. More direction as to whether Q7 or Q8 is applicable and which option should be checked on Q7b or Q8b ie Corporation, Trust etc should be given."

There has been some clarification regarding 8938.

http://www.irs.gov/businesses/corporations/article/0,,id=255061,00.html

I had questions regarding the value of my interest in a foreign pension. The FMV has nothing to do with the reporting threshold, it's just the distribution that the IRS require. So if you're lucky enough to have an U.K pension of $1,000,000  it makes no odds, no need to report, (assuming you've not met the reporting threshold otherwise and are required to file Form 8938) It's an interesting article, one that answers all, but one of my questions.

The Q&A gives welcome relief on foreign real estate reporting too.   

There has been some clarification regarding 8938.

http://www.irs.gov/businesses/corporations/article/0,,id=255061,00.html

I had questions regarding the value of my interest in a foreign pension. The FMV has nothing to do with the reporting threshold, it's just the distribution that the IRS require. So if you're lucky enough to have an U.K pension of $1,000,000  it makes no odds, no need to report, (assuming you've not met the reporting threshold otherwise and are required to file Form 8938) It's an interesting article, one that answers all, but one of my questions.

The Q&A gives welcome relief on foreign real estate reporting too.   

I don't quite take that away form the IRS post unless you are ignorant of the FMV of your interest in the plan.....it seems like an "interesting" criterion, rewarding not knowing something. I would think that a simple annuity type calculation back tracking from you future pension payment would give you an estimate of the present value of your interest in a DB plan. But maybe I'm over thinking this.

"If you do not know or have reason to know based on readily accessible information the fair market value of your beneficial interest in the pension plan or deferred compensation plan on the last day of the year and you did not receive any distributions from the plan, the value of your interest in the plan is zero.  In this circumstance, you should also use a value of zero for the plan in determining whether you have met your reporting threshold.  If you have met the reporting threshold and are required to file Form 8938, you should report the plan and indicate that its maximum is zero"

Looking at the IRS Q&A, if you know or don't know the FMV, it's still the distributed amount that counts. Zero or otherwise.

"If you do not know or have reason to know based on readily accessible information the fair market value of your beneficial interest in the pension plan or deferred compensation plan on the last day of the year and you did not receive any distributions from the plan, the value of your interest in the plan is zero.  In this circumstance, you should also use a value of zero for the plan in determining whether you have met your reporting threshold.  If you have met the reporting threshold and are required to file Form 8938, you should report the plan and indicate that its maximum is zero"

Looking at the IRS Q&A, if you know or don't know the FMV, it's still the distributed amount that counts. Zero or otherwise.

Yes I agree, but it seems to be a pretty subjective standard. What is "readily accessible information". Would knowing your final salary benefit then require you to calculate the present value of the principal in the plan.....or not. Its all very hand waiving, but I like your approach and maybe the IRS has done this because most pension plans are not seen as a big risk factor.