Form 8938 Foreign Asset Reporting Resources: A Complete Guide to FATCA Reporting

Many U.S. taxpayers who own financial assets outside the United States may be required to file Form 8938, Statement of Specified Foreign Financial Assets, as part of their federal income tax return.

Form 8938 was introduced under the Foreign Account Tax Compliance Act (FATCA) to improve reporting of foreign financial assets held by U.S. taxpayers. While it is often discussed alongside the FBAR, the two reporting requirements are separate and have different rules.

This guide explains the purpose of Form 8938, who may need to file, the types of assets that may require reporting, and where to find more detailed educational resources.

What Is Form 8938?

Form 8938 is an information return that certain taxpayers must file with their federal income tax return to disclose specified foreign financial assets when the total value exceeds applicable reporting thresholds.

Unlike the FBAR, which is filed electronically with FinCEN, Form 8938 is submitted to the IRS together with your annual tax return.

Who May Need to File Form 8938?

You may have a Form 8938 filing requirement if you:

• Are a U.S. citizen.

• Are a Green Card holder.

• Meet the U.S. tax residency rules.

• Own specified foreign financial assets.

• Exceed the applicable reporting thresholds based on your filing status and whether you live inside or outside the United States.

The filing thresholds vary depending on your circumstances, making it important to determine whether the reporting requirement applies to you.

What Foreign Assets May Need to Be Reported?

Depending on your situation, Form 8938 may require reporting of:

• Foreign bank accounts

• Foreign investment accounts

• Foreign brokerage accounts

• Foreign stocks held outside a U.S. brokerage

• Interests in certain foreign entities

• Certain foreign retirement accounts

• Foreign partnership interests

• Foreign trusts

• Other specified foreign financial assets

Not every foreign asset is reportable, and the reporting rules can differ depending on the type of asset and how it is owned.

FATCA Reporting Requirements

FATCA was enacted to increase transparency of offshore financial assets and improve tax compliance.

Many foreign financial institutions now report information about U.S. account holders to tax authorities under international information-sharing agreements. As a result, taxpayers should ensure that their U.S. reporting is complete and accurate.

Form 8938 Is Different from the FBAR

Although Form 8938 and the FBAR often apply to the same taxpayers, they are separate reporting requirements.

They differ in several important ways, including:

• Filing thresholds

• Assets that must be reported

• Filing location

• Reporting rules

• Penalty provisions

Some taxpayers must file both forms, while others may only be required to file one.

Common Form 8938 Mistakes

Common reporting errors include:

• Assuming an FBAR satisfies Form 8938 requirements

• Overlooking foreign investment accounts

• Failing to report foreign financial assets held outside traditional bank accounts

• Misunderstanding the filing thresholds

• Omitting interests in certain foreign entities

• Forgetting assets acquired through inheritance or gifts

What If You Did Not File Form 8938?

Some taxpayers discover after filing their tax returns that they should have included Form 8938.

Depending on the facts and circumstances, there may be IRS compliance procedures available to correct prior reporting. The appropriate solution depends on the taxpayer's individual situation, including whether other international information returns may also be required.

Learn More About Form 8938

Our Form 8938 Resource Center includes educational articles covering topics such as:

• What Is Form 8938?

• Who Must File Form 8938?

• Form 8938 Filing Thresholds

• Foreign Assets That Must Be Reported

• FATCA Reporting Rules

• Form 8938 vs. FBAR

• Reporting Foreign Retirement Accounts

• Penalties for Noncompliance

• Correcting Late Form 8938 Filings

• Frequently Asked Questions

Each resource is designed to help individuals, expatriates, business owners, and international taxpayers better understand their U.S. foreign asset reporting obligations.

Related International Tax Resources

You may also find these educational guides helpful:

• FBAR (FinCEN Form 114)

• Foreign Tax Credit

• Foreign Earned Income Exclusion

• PFIC Reporting

• Form 5471 – Foreign Corporations

• Form 8865 – Foreign Partnerships

• Foreign Trust Reporting

• International Tax Compliance

This article is provided for educational purposes only and should not be considered legal or tax advice. Form 8938 reporting requirements depend on each taxpayer's individual facts and circumstances.