IRS Tax Forms
Form 8938: FATCA Filing Requirements, Thresholds, and FBAR Differences
Form 8938, Statement of Specified Foreign Financial Assets, reports certain foreign accounts and other financial assets to the IRS. Specified individuals and specified domestic entities file it when their reportable assets exceed the applicable thresholds and they must file an annual return. Form 8938 does not replace the separate FBAR filing.
Official sources
Official IRS Form 8938 Resources
The revision date is not the reporting year. Enter the relevant calendar or fiscal tax year at the top of this continuous-use form.
Quick reference
Form 8938 at a Glance
Question; Quick answer
- What does it report?
- Specified foreign financial assets, their values and associated tax items.
- Is the threshold per account?
- No. Test the total value of relevant assets.
- Does zero income mean no reporting?
- No. An asset can be reportable without generating income.
- Does it replace FBAR?
- No. Both filings may be required.
- Can it be filed separately?
- No. Attach it to the applicable annual or amended return.
- Does it calculate a new tax on the account balance?
- No. It is an information disclosure, not a tax calculation.
Form purpose
What Is Form 8938?
Form 8938 is part of the foreign financial asset reporting framework associated with the Foreign Account Tax Compliance Act, commonly called FATCA. It gives the IRS information about specified foreign financial assets and where related income or other tax items appear on the return.
FATCA also includes financial-institution obligations. A bank's request for a FATCA self-certification or Form W-9 is not the same as filing your own Form 8938. Reporting by a foreign bank does not fulfill the taxpayer's separate disclosure duties.
Filing requirements
Who Must File Form 8938?
First determine whether you are a specified individual or a specified domestic entity. Then determine whether you have an interest in specified assets and cross the appropriate threshold.
Specified individuals generally include U.S. citizens, resident aliens and certain nonresident aliens, including those electing resident treatment for a joint return. Residency starting dates, treaty positions and certain U.S. territory rules can change the analysis.
Specified domestic entities include certain closely held domestic corporations and partnerships, and certain domestic trusts. The corporation/partnership rules generally require at least 80% ownership by a specified individual at year-end and either at least 50% passive gross income or at least 50% passive assets, applying the detailed tests and exceptions. Certain trusts with specified persons as current beneficiaries also qualify. An entity does not become a specified domestic entity merely because it owns something overseas.
If you do not have to file an income tax return, you generally do not have to file Form 8938 even when asset values exceed the threshold. That exception does not remove any independent FBAR obligation. See the IRS filing instructions.
Reporting thresholds
Form 8938 Reporting Thresholds
File when the total value exceeds either applicable limit. These are reporting thresholds, not tax-free allowances.
| Filer and residence category | More than this on the last day of the tax year | OR more than this at any time during the tax year |
|---|---|---|
| Unmarried, living in the U.S. | $50,000 | $75,000 |
| Married filing separately, living in the U.S. | $50,000 | $75,000 |
| Married filing jointly, living in the U.S. | $100,000 | $150,000 |
| Unmarried, qualifying as living abroad | $200,000 | $300,000 |
| Married filing separately, qualifying as living abroad | $200,000 | $300,000 |
| Married filing jointly, qualifying as living abroad | $400,000 | $600,000 |
| Specified domestic entity | $50,000 | $75,000 |
The wording more than matters. Exactly $50,000 at year-end does not exceed a $50,000 limit, although the separate during-year test could still trigger filing.
Higher overseas thresholds require a foreign tax home and the applicable presence test. This generally means a U.S. citizen who is a bona fide foreign resident for an uninterrupted period including the entire tax year, or a U.S. citizen or resident present abroad for at least 330 full days during a qualifying 12-month period ending in the tax year. A foreign mailing address alone is insufficient.
For specified individuals, assets covered by certain duplicative-reporting exceptions still count toward the threshold. Specified domestic entities have a different rule for assets reported on forms listed in Part IV. Follow the IRS threshold and valuation instructions.
Asset reporting
Which Foreign Assets Are Reportable?
Form 8938 covers more than foreign bank accounts. Ownership, account location and how an investment is held all matter.
| Asset or arrangement | General Form 8938 treatment when filing is required |
|---|---|
| Deposit or custodial account at a foreign financial institution | Report the account and its required details. |
| Foreign shares held directly, outside a financial account | Generally report as another foreign financial asset. |
| Interest in a foreign corporation or partnership | Generally report, subject to applicable exceptions. |
| Foreign pension or deferred-compensation interest | Generally report under the special plan valuation rules. |
| Foreign-issued insurance or annuity with cash value | Generally report when it meets the specified-asset definition. |
| Direct ownership of foreign real estate | The real estate itself is not a specified foreign financial asset. |
| Foreign entity holding real estate | The ownership interest may be reportable; its value can reflect the property. |
| Foreign securities in a U.S. financial account | Generally not separately reportable on Form 8938. |
| Account at a foreign branch of a U.S. financial institution | Generally not reportable on Form 8938, although FBAR can apply. |
| Foreign government social-security-type benefits | Generally excluded; a separate foreign pension is not automatically excluded. |
Do not separately list every security inside an already reported foreign custodial account. Conversely, do not omit a foreign entity interest simply because it is not a bank account.
Assets owned by a disregarded entity generally require looking through to its owner. Interests in foreign trusts and estates have knowledge and valuation rules. Treaty tax treatment or a bank's reporting exemption does not automatically exempt a foreign retirement interest from Form 8938. See the IRS foreign-asset FAQs.
Compare the forms
Form 8938 vs FBAR
Form 8938 is an IRS return attachment. FBAR is a separate foreign-account report to FinCEN. A taxpayer may need neither, one or both.
| Feature | Form 8938 | FBAR, FinCEN Form 114 |
|---|---|---|
| What triggers reporting? | Applicable specified-person and asset-value tests | Foreign-account financial interest or signature authority, subject to exceptions |
| Basic value threshold | Varies by filing status and residence | Aggregate foreign-account value exceeding $10,000 at any time during the calendar year |
| Assets covered | Financial accounts plus certain non-account financial assets | Foreign financial accounts |
| Where filed? | With the federal annual return | Separately through FinCEN's BSA E-Filing System |
| Deadline | The attached return's deadline, including extensions | Generally April 15 with an automatic extension to October 15 |
| Signature authority without ownership | Not by itself sufficient | Can create a filing requirement |
For example, directly held foreign stock may be reportable on Form 8938 but is not itself an FBAR account. A foreign branch account of a U.S. bank can require FBAR even though it is excluded from Form 8938. Confirm each filing independently using the IRS comparison chart.
Tax guidance
How to Value Assets for Form 8938
Maximum value and currency conversion
Establish fair market value in the asset's currency, then convert to U.S. dollars using the applicable year-end rate. The IRS generally directs filers to Treasury rates, with rules for alternatives and qualifying account-statement rates. The year-end rate generally applies even if the asset was sold earlier in the year.
For accounts, periodic statements may support the maximum value unless readily available information shows they are not a reasonable estimate. Do not substitute the December closing balance for a known higher annual maximum.
Keep the foreign-currency value, rate, source and converted value together in the workpaper. Record whether a quoted rate expresses foreign units per U.S. dollar or the reverse, so the calculation does not accidentally invert the exchange rate.
For illustration only, if an account's maximum is 80,000 foreign-currency units and the applicable conversion rate is 2 units per U.S. dollar, its converted maximum is $40,000. That assumed rate is not an actual 2025 exchange rate. Combine the resulting values under the relevant threshold rules, then preserve each account's separate reporting details.
Joint ownership
- Spouses filing jointly: Count a jointly owned asset once and report its full maximum value.
- Spouses who are both specified individuals and file separately: Generally count half of the jointly owned asset for each spouse's threshold test. If filing is required, each reports the asset's full maximum value.
- Other joint owners, including a spouse who is not a specified individual: Generally use the entire value for the threshold test and required reporting.
The threshold calculation and the value entered on the form are therefore not always identical. See the IRS joint-ownership instructions.
Foreign pensions and assets without statements
Do not enter zero merely because a pension does not issue a familiar U.S. statement. Apply the plan-specific valuation rules and use reasonably accessible information.
For certain foreign pension, deferred-compensation or estate interests whose fair market value is not known or reasonably knowable, the instructions provide a distribution-based method. If no distributions were received and the value is not reasonably knowable, zero may be permitted under that rule. Document why the rule applies. It is not a blanket exclusion for overseas retirement savings.
Before you start
Records to Collect Before Filing
Prepare an account and asset inventory containing:
- Institution or entity names, addresses, countries and account identifiers.
- Ownership, filing status, tax residency and relevant opening or closing dates.
- Maximum and year-end values, with statements and valuation support.
- Exchange rates and conversion calculations.
- Interest, dividends, gains, losses and other relevant tax items.
- Foreign pension, insurance, trust and entity documentation.
- Copies of related Forms 3520, 3520-A, 5471, 8621 and 8865 when applicable.
Reconcile the inventory against foreign income on the return and the separate FBAR review. For CPA firms, this record coordination can be organized within individual tax return preparation support.
Form walkthrough
Form 8938 Instructions by Part
| Part | Entries and review points |
|---|---|
| Header | Enter the tax year, taxpayer identification, filer type and additional-statement count. |
| I, lines 5-9 | Summarize foreign deposit and custodial accounts reported in Part V, including counts, maximum values and closures. |
| II, lines 10-12 | Summarize other foreign assets reported in Part VI and relevant acquisitions or sales. |
| III, lines 13-14 | Identify associated tax items and the form, schedule and line where each is reported. |
| IV, lines 15-19 | Count qualifying information returns used for duplicative-reporting exceptions. |
| V, lines 20-28 | Supply each foreign account's identity, institution, maximum value, ownership indicators and currency information. |
| VI, lines 29-36 | Supply details of each other foreign asset, including issuer or entity, value and applicable dates. |
Complete detailed asset schedules before reconciling the summaries. Part III does not replace reporting the income on the appropriate tax-return schedule.
For example, interest from a foreign savings account may need to appear in the return's interest-income reporting and in the corresponding Part III summary. The account's maximum balance is not interest income. Keep asset values and income amounts in separate columns, and identify the actual return line used rather than inserting the balance as a tax item.
For additional accounts or assets, use additional copies of page 2 as directed in the instructions, completing the information required by Part V or VI. Identify the taxpayer, relevant part and asset clearly, and complete the additional-statements checkbox and count at the top. A total balance without the required account details is not a complete continuation statement.
Duplicative-reporting relief requires the specified conditions, including timely filing of the other forms. It is not enough to say an asset was mentioned elsewhere. For individuals, qualifying excepted assets still generally count toward the reporting threshold. See the official instructions.
Worked examples
Form 8938 Examples
Assume these individuals must file a U.S. income tax return and have no special reporting exceptions.
Example 1: Below Form 8938 limits but an FBAR review is needed
A single U.S. resident's only foreign account ends the year at $45,000 and peaks at $70,000. Neither Form 8938 threshold is exceeded, so this account alone does not trigger Form 8938. Its value exceeds the separate $10,000 FBAR threshold, so that filing must be evaluated independently.
Example 2: Married taxpayers living abroad
A jointly filing couple qualifies for the higher overseas thresholds. Their reportable assets total $390,000 at year-end but reach $610,000 during the year. Form 8938 is required because the during-year amount exceeds $600,000, even though the year-end value is below $400,000.
Example 3: Separate returns and a joint account
Two spouses who are specified individuals live in the U.S. and file separately. Their jointly owned foreign account stays at $120,000. Each uses $60,000 for the threshold test, exceeding $50,000. Each must report the account's full $120,000 maximum on their own Form 8938, not just $60,000.
Filing guidance
How and When to File Form 8938
Attach Form 8938 to the applicable annual return, including an amended return when appropriate. Do not submit it by itself or through the FBAR portal.
For most calendar-year individuals, the 2025 return deadline was April 15, 2026; a valid extension generally extends filing to October 15, 2026. Qualifying overseas taxpayers and disaster-affected filers can have different deadlines. Use the deadline applicable to the return, not a separate assumed FATCA due date.
When correcting a filed form, reconcile the assets and all affected income or other information returns. Follow the amended-return procedure for the return involved. Fixing Form 8938 does not automatically correct an FBAR or foreign-entity filing.
Penalty guidance
Form 8938 Penalties and Late Filing
A required form that is incomplete, incorrect or late can trigger a $10,000 penalty. Continuing failure after IRS notice can produce additional $10,000 penalties for each 30-day period or part after the initial 90-day period, up to $50,000 additional. That means a potential $60,000 total for those disclosure penalties.
A 40% accuracy-related penalty may also apply to tax underpayments attributable to undisclosed foreign financial assets. Reasonable-cause relief is fact-specific, not automatic. See the IRS penalty rules.
An incomplete disclosure can also extend the period during which the IRS may assess tax. The general information-reporting rule can keep that period open until three years after the required information is furnished, with reasonable-cause provisions affecting its scope. Do not assume a missing form becomes harmless simply because the original return is several years old.
Before making a late submission, review all affected years, related foreign income, existing IRS contact and potentially applicable delinquent or compliance procedures with a qualified international tax professional. No single late-filing procedure suits every situation.
Review checklist
Common Form 8938 Mistakes
Testing each account separately instead of the relevant combined assets.
Assuming an overseas address establishes the higher threshold.
Omitting zero-income or closed accounts that still require reporting.
Duplicating securities inside an already reported account.
Entering half a joint asset's value when full-value reporting is required.
Confusing Form 8938 with FBAR or financial-institution FATCA certification.
Filing questions
Form 8938 FAQs
Is Form 8938 required if I already filed FBAR?
Possibly. FBAR filing does not satisfy Form 8938. Apply both sets of rules separately.
Do I report foreign rental property?
Directly owned foreign real estate is not itself reported on Form 8938. A foreign entity holding it may create a reportable financial interest. Rental income and other tax obligations still need separate evaluation.
Does Form 8938 create tax on my foreign savings?
No. It discloses assets. Interest, dividends, gains and other taxable items are reported elsewhere on the return under the applicable rules.
Do I report an account closed before December 31?
Potentially. A closed account can still push total assets over the during-year threshold and require reporting. Include the applicable maximum value and closure indicator rather than removing it from the inventory because its final balance is zero.
Can TurboTax or another tax program file it?
Check the product and tax year's support for Form 8938 and continuation statements. Software availability does not establish whether foreign pensions, trusts or entity interests have been classified correctly.
Where can I download Form 8938?
Use the official IRS PDF. The November 2021 continuous-use revision remains the version checked for this guide; enter your actual reporting year.
Related references
Related IRS Forms and Sources
This guide provides general federal tax information, not individualized advice. Foreign-asset classification, tax residency and late-filing options require review of the taxpayer's facts.
