FATCA ReportingUpdated: September 2026

FATCA Form 8938 Filing Requirements

Comprehensive guide to IRS Form 8938, Statement of Specified Foreign Financial Assets, covering who must file, overseas and U.S. reporting thresholds, reportable foreign assets, foreign pensions and investments, valuation rules, filing deadlines, penalties, and the relationship between Form 8938 and FBAR.

Common Compliance Scenarios & Determinations

Practical Expat Scenario	Legal Determination & Action
Single U.S. citizen living abroad with $275,000 of specified foreign assets at year-end	The taxpayer generally does not meet the year-end $300,000 test solely from that amount, but must also determine whether the assets exceeded $300,000 at any time during the year.
Single qualifying taxpayer abroad reaches $325,000 during the year	The taxpayer generally exceeds the $300,000 at-any-time threshold and must file Form 8938 if the other requirements are satisfied.
Married couple abroad filing jointly with $450,000 of specified foreign assets at year-end	The $400,000 year-end threshold is exceeded, so Form 8938 is generally required.
Foreign stock owned directly outside a brokerage account	The stock can be a specified foreign financial asset even though it is not a financial account, and may therefore be reportable on Form 8938 when the applicable requirements are met.
Foreign bank account subject to both Form 8938 and FBAR	The taxpayer may need to report the account on both forms because the two reporting requirements operate independently.
Foreign pension with no distribution during the year	The absence of a distribution does not automatically eliminate Form 8938 reporting. The taxpayer's interest and the applicable valuation and reporting rules must be reviewed.

Who Must File Form 8938?

A specified individual generally must file Form 8938 when the person has an interest in specified foreign financial assets, the applicable value threshold is exceeded, and the person is otherwise required to file an annual income-tax return.

Qualifying Specified Individuals Include:

U.S. citizens
U.S. resident aliens
Certain nonresident aliens treated as resident aliens for purposes of the applicable rules
Nonresident aliens married to U.S. citizens or residents who elect to be treated as residents in qualifying circumstances

Specified Domestic Entities: Certain domestic corporations, partnerships and trusts can also have Form 8938 filing obligations when they qualify as specified domestic entities and exceed the applicable foreign-asset threshold.

No Income Tax Return Exception: If a taxpayer is not required to file an income-tax return for the year, Form 8938 generally is not required solely because the value of the person's foreign assets exceeds the normal reporting threshold.

Form 8938 Reporting Thresholds Matrix

The applicable test is met when the aggregate value of specified foreign financial assets is more than the applicable threshold on the last day of the tax year or more than the applicable threshold at any time during the tax year.

Taxpayer Location & Filing Status	Last Day of Tax Year	At Any Time During Tax Year
Taxpayers Living Abroad (Higher Thresholds)
Unmarried or Married Filing Separately	$200,000	$300,000
Married Filing Jointly	$400,000	$600,000
Taxpayers Living in the United States
Unmarried or Married Filing Separately	$50,000	$75,000
Married Filing Jointly	$100,000	$150,000

Qualifying for Higher Overseas Thresholds:

To use the higher overseas thresholds, the taxpayer generally must have a foreign tax home and meet the applicable presence-abroad test. A qualifying taxpayer may be a U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes the entire tax year, or a U.S. citizen or resident who is physically present in a foreign country or countries for at least 330 full days during a qualifying 12-month period.

Reportable Foreign Financial Assets vs. Excluded Assets

Foreign Financial Accounts:

Foreign bank accounts
Foreign brokerage and securities accounts
Foreign custodial accounts
Certain cash-value insurance accounts
Certain annuity accounts maintained by foreign financial institutions

Assets Held Outside Accounts:

Stock or securities issued by a non-U.S. person when held for investment
Interests in foreign entities
Certain financial instruments or contracts issued by or entered into with non-U.S. persons

Scope Distinction: Form 8938 is broader than FBAR. It can cover specified foreign financial assets that are not themselves foreign financial accounts, such as certain foreign stock held directly rather than through a foreign brokerage account.

Assets Generally NOT Reported on Form 8938:

A financial account maintained by a U.S. financial institution, even when the underlying assets are foreign.
Foreign real estate owned directly by the taxpayer, although an interest in a foreign entity holding real estate can be reportable.
Foreign currency held directly rather than in a reportable financial account.
Tangible personal property held directly overseas.
Certain assets for which the Form 8938 regulations provide a specific reporting exception.

Foreign Pensions & Asset Valuation Rules

A foreign pension or deferred compensation arrangement may constitute a specified foreign financial asset and may need to be reported on Form 8938.

The value of a foreign pension or deferred compensation interest can require special valuation rules because the taxpayer may not have a readily available market value.

Pension Alert: Do not assume every foreign pension is automatically reportable or automatically exempt. The plan's legal structure, taxpayer's interest and applicable Form 8938 valuation and exception rules must be considered.

IRS Valuation Principles:

Fair Market Value: Specified foreign financial assets are generally valued at fair market value when determining whether the Form 8938 reporting threshold has been exceeded.
Currency Conversion: An asset denominated in a foreign currency must generally first be valued in that currency and then converted into U.S. dollars using the applicable IRS foreign-currency conversion rules.
Peak Value: For threshold purposes, the taxpayer generally considers the highest value of the asset during the tax year, as required by the applicable Form 8938 rules.
Unknown Value: If the taxpayer cannot determine an exact value, the Form 8938 instructions contain special rules for reasonable estimates and certain valuation situations.

Filing Process & Return Deadlines

Form 8938 is attached to the taxpayer's annual federal income-tax return and follows the due date, including valid extensions, of that return.

U.S. citizens and resident aliens living abroad who qualify for the automatic overseas filing extension generally receive an automatic two-month extension from April 15 to June 15. An additional extension may generally move the return deadline to October 15.

Key Deadline Distinction: Form 8938 does not have a separate standalone filing date like FBAR. It is filed with the applicable annual return rather than electronically through FinCEN.

Step-by-Step Submission Walkthrough:

Determine whether you are a specified individual or specified domestic entity.
Determine whether you meet the applicable U.S. or overseas reporting threshold.
Identify every specified foreign financial asset in which you had an interest during the year.
Determine the maximum and year-end values required for the applicable assets.
Convert foreign-currency values into U.S. dollars under the IRS rules.
Gather account numbers, institution information, ownership details and other identifying information required by Form 8938.
Report the required assets and associated income, gains, losses, deductions, credits, distributions or other tax-return information when applicable.
Attach Form 8938 to the federal annual return and file it by the applicable return deadline, including valid extensions.

Form 8938 vs. FBAR (FinCEN Form 114)

Form 8938 generally has higher thresholds for individuals living abroad and covers some foreign assets that are outside the FBAR definition of a foreign financial account.

Parameter	Form 8938 (FATCA)	FBAR (FinCEN 114)
Full Title	Statement of Specified Foreign Financial Assets	Report of Foreign Bank and Financial Accounts
Filed With	Federal income-tax return	FinCEN through the BSA E-Filing System
Regulatory Scope	Specified foreign financial assets, including certain foreign accounts and certain foreign assets held outside financial accounts.	Qualifying foreign financial accounts based primarily on an aggregate $10,000 maximum-value threshold.
Threshold	Depends on filing status and whether the taxpayer lives in the United States or abroad.	$10,000 maximum-value threshold

Reporting Overlap: The same foreign bank or brokerage account can potentially be reportable on both forms. Filing one form does not automatically satisfy the other.

FATCA Statutory Penalties & Enforcement

Violation Standard	Civil / Criminal Statutory Penalty
Initial Failure to File	$10,000
Continuing Failure	If the IRS sends a notice of failure to file and the taxpayer does not submit a complete and correct Form 8938 within 90 days, an additional $10,000 penalty may apply for each 30-day period, or fraction of a period, after the 90-day period. ($50,000 additional penalty)
Maximum Civil Penalty	The initial $10,000 penalty combined with the maximum additional continuing-failure penalty can result in a total of up to $60,000.
Accuracy-Related Penalty	If an understatement of tax results from a transaction involving an undisclosed specified foreign financial asset, a 40% penalty can potentially apply to the related tax underpayment.
Civil Fraud Penalty	Where the applicable tax underpayment is attributable to fraud, a 75% fraud penalty may apply under the relevant tax rules.

Reasonable Cause Exception: A penalty may not apply when the failure to file or disclose is due to reasonable cause and not willful neglect, but the taxpayer generally must affirmatively establish the facts supporting reasonable cause.

Criminal Sanctions: Serious violations can also expose a taxpayer to criminal penalties in addition to civil penalties.

Special Interconnected Reporting Rules

Duplicate Reporting Relief: Certain assets already reported on other international information returns may qualify for specific duplicate-reporting exceptions or reduced reporting requirements under the Form 8938 instructions.
Foreign Entities: An interest in a foreign corporation, partnership or other entity can trigger Form 8938 reporting and may also require a separate international information return such as Form 5471 or Form 8865.
Foreign Trusts: Foreign trust interests can trigger Form 8938 as well as other information returns, including Forms 3520 or 3520-A, depending on the taxpayer's relationship with the trust.
Foreign Gifts: Receiving certain large foreign gifts or inheritances can involve separate reporting requirements that are not satisfied by filing Form 8938.

Pre-Filing Compliance Checklist

✓Confirm filing status and whether you qualify for the higher overseas thresholds.
✓Confirm whether you have a foreign tax home and satisfy the applicable presence-abroad test.
✓List foreign bank, brokerage, custodial, insurance and annuity accounts.
✓Identify foreign stocks, securities, entity interests and other specified assets held outside financial accounts.
✓Review foreign pensions, deferred compensation arrangements and foreign trust interests.
✓Determine the required maximum and year-end values.
✓Convert foreign-currency amounts correctly into U.S. dollars.
✓Check whether duplicate-reporting exceptions apply.
✓Review whether FBAR, Form 5471, Form 3520, Form 3520-A, Form 8865 or other international forms are also required.
✓Attach Form 8938 to the federal income-tax return and retain supporting records.

Practical Compliance & Real-World Scenarios

Practical Scenario	Regulatory Determination & Legal Treatment
Single U.S. citizen living abroad with $275,000 of specified foreign assets at year-end	The taxpayer generally does not meet the year-end $300,000 test solely from that amount, but must also determine whether the assets exceeded $300,000 at any time during the year.
Single qualifying taxpayer abroad reaches $325,000 during the year	The taxpayer generally exceeds the $300,000 at-any-time threshold and must file Form 8938 if the other requirements are satisfied.
Married couple abroad filing jointly with $450,000 of specified foreign assets at year-end	The $400,000 year-end threshold is exceeded, so Form 8938 is generally required.
Foreign stock owned directly outside a brokerage account	The stock can be a specified foreign financial asset even though it is not a financial account, and may therefore be reportable on Form 8938 when the applicable requirements are met.
Foreign bank account subject to both Form 8938 and FBAR	The taxpayer may need to report the account on both forms because the two reporting requirements operate independently.
Foreign pension with no distribution during the year	The absence of a distribution does not automatically eliminate Form 8938 reporting. The taxpayer's interest and the applicable valuation and reporting rules must be reviewed.

Official IRS Guidance & Reference Materials

Official Source	Link
IRS — Do I need to file Form 8938?	View on IRS.gov →
IRS — Instructions for Form 8938	View on IRS.gov →
IRS — FATCA Information for Individuals	View on IRS.gov →
IRS — Comparison of Form 8938 and FBAR Requirements	View on IRS.gov →

Live Expat FX Tool Zero Hidden Markup• 50+ Global Currencies

International Money Transfer & FX Rates — Transparent Cross-Border Wire Rates

Bypass retail bank markups when transferring USD, GBP, EUR, CAD, AUD, or INR. Check today's real mid-market exchange rate instantly before initiating a transfer.

Compare Live Rates Free live calculator • 0% spread

Frequently Asked Compliance Questions

For a qualifying taxpayer living abroad who files other than a joint return, the threshold is generally more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year. For married taxpayers filing jointly, the thresholds are more than $400,000 and more than $600,000, respectively.

Yes. For a qualifying taxpayer living abroad who is married but files separately, the applicable individual threshold is generally more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.

It can be. Certain interests in foreign pension plans and foreign deferred compensation plans are specified foreign financial assets. Whether a particular pension must be reported depends on the plan and the applicable Form 8938 rules, including valuation and exceptions.

No. Form 8938 and FBAR are separate reporting requirements. The same foreign bank or investment account can potentially be reportable on both, while some assets may fall under Form 8938 without being subject to FBAR.

The initial failure-to-file penalty can be $10,000. If the IRS sends a notice and the taxpayer still does not file a complete and correct Form 8938 within 90 days, an additional $10,000 can apply for each 30-day period or fraction of a period, up to an additional $50,000. Other tax-related penalties can apply in appropriate cases.

Potentially yes. Form 8938 is an information-reporting requirement and can apply because of the value and nature of specified foreign financial assets even when those assets produced no taxable income during the year.

Professional Disclaimer: Federal and international tax regulations are subject to ongoing statutory amendments. Taxpayers with cross-border assets should consult with a certified public accountant (CPA) or tax attorney specializing in international compliance before submitting filings.

Live Expat FX Tool 0% Hidden Spread