FATCA Form 8938: Who Must File and How
Updated April 12, 2026
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Quick answer
Form 8938 under FATCA requires US taxpayers to report specified foreign financial assets when they exceed threshold amounts - starting at $50,000 at year-end for single filers. It is filed with Form 1040, covers a broader range of assets than FBAR, and carries penalties of up to $10,000 for failure to file plus additional penalties for continued non-compliance.
Who Must File Form 8938?
If you are a US taxpayer with significant foreign financial assets, you likely must file Form 8938 (Statement of Specified Foreign Financial Assets). This form is filed with your annual income tax return (Form 1040) and is required under the Foreign Account Tax Compliance Act (FATCA).
Form 8938 is required if you are:
- A US citizen
- A resident alien (including most visa holders who pass the Substantial Presence Test)
- A nonresident alien who elects to file a joint return with a US citizen spouse
Filing Thresholds
The threshold depends on your filing status and whether you live in the US or abroad:
Living in the United States:
| Filing Status | Year-End Value | Any-Point-During-Year Value |
|---|---|---|
| Single or Married Filing Separately | $50,000 | $75,000 |
| Married Filing Jointly | $100,000 | $150,000 |
Living Outside the United States:
| Filing Status | Year-End Value | Any-Point-During-Year Value |
|---|---|---|
| Single or Married Filing Separately | $200,000 | $300,000 |
| Married Filing Jointly | $400,000 | $600,000 |
You must file if either threshold is met - not just the year-end value.
What Assets Must Be Reported on Form 8938?
Form 8938 covers specified foreign financial assets, which include:
- Foreign bank accounts (checking, savings, brokerage)
- Foreign stocks and securities held directly (not through a US fund)
- Foreign mutual funds or pooled investment funds
- Interests in foreign partnerships, trusts, or estates
- Foreign-issued life insurance with cash value
- Foreign hedge funds and private equity funds
- Certain foreign contracts (like annuities)
Not required on Form 8938:
- Foreign real estate owned directly
- Foreign currency held directly
- Precious metals held directly
- Social Security-type benefits from a foreign government
FATCA vs. FBAR: Key Differences
Both forms deal with foreign financial interests, but they are distinct requirements:
| Feature | FBAR (FinCEN 114) | Form 8938 (FATCA) |
|---|---|---|
| Filed with | FinCEN (separate filing) | IRS (attached to Form 1040) |
| Threshold | $10,000 aggregate | $50,000+ depending on status |
| What it covers | Foreign financial accounts only | Broader range of foreign financial assets |
| Due date | April 15 (auto-extend to Oct 15) | April 15 (or extended due date of return) |
| Penalty | Up to $10,000 per violation (non-willful) | Up to $10,000 per failure, plus $10,000/30 days |
Having both forms apply at the same time is common for expats with foreign accounts. Filing one does not substitute for filing the other.
How to File Form 8938
Form 8938 is attached to your Form 1040. For each reported asset, you provide:
- Type and description of the asset
- Maximum value during the year (in US dollars)
- Whether the asset generated income, and if so, which schedule reports that income
For accounts, use the year-end statement value or the highest balance during the year. Convert all amounts to US dollars using the exchange rate on December 31 of the tax year (or the date of disposal for sold assets).
Penalties for Non-Filing
The consequences of failing to file Form 8938 are significant:
- Initial penalty: $10,000 for each failure to disclose
- Continuing penalty: Up to $10,000 for each 30-day period after IRS notice (maximum $50,000 additional)
- Underpayment penalty: 40% of any underpayment of tax attributable to undisclosed foreign financial assets
- Extended statute of limitations: The IRS can audit returns up to 6 years back (instead of the standard 3) if you failed to file Form 8938
Get Your Personalized FATCA Assessment
Whether you need to file Form 8938 depends on your specific asset values, filing status, and where you live. Start the free 5-minute diagnostic to find out exactly which forms apply to your situation.
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Start Free DiagnosticCommon Questions
US citizens, resident aliens, and certain nonresident aliens must file Form 8938 if their specified foreign financial assets exceed the applicable threshold. For single filers living in the US, the threshold is $50,000 at year-end or $75,000 at any point during the year.
FBAR (FinCEN 114) covers only foreign financial accounts and is filed separately with FinCEN. Form 8938 covers a broader set of foreign financial assets including accounts, foreign stocks held directly, foreign partnerships, and certain foreign contracts, and is filed with your tax return.
The IRS can impose a penalty of $10,000 for failure to disclose, plus an additional $10,000 for each 30-day period the form is not filed after IRS notice (up to $50,000). Underpayments attributable to undisclosed foreign financial assets are subject to a 40% penalty.
This article is educational information only. It is not tax, legal, or financial advice. For decisions specific to your situation, consult a licensed CPA or Enrolled Agent.