IRS Form 8938: FATCA Foreign Asset Reporting
Under the Foreign Account Tax Compliance Act (FATCA), U.S. taxpayers with foreign financial assets above certain thresholds must file Form 8938 with their tax return. The penalties for non-filing are severe — up to $50,000 per year — and the IRS is aggressively enforcing FATCA compliance through data-sharing agreements with over 110 countries.
FATCA Filing Thresholds (Who Must File)
LIVING IN THE U.S. — SINGLE: Total specified foreign financial assets exceeding $50,000 on the last day of the tax year, or $75,000 at any time during the year.
LIVING IN THE U.S. — MARRIED FILING JOINTLY: Thresholds double: $100,000 on the last day, or $150,000 at any time during the year.
LIVING ABROAD — SINGLE: Total specified foreign financial assets exceeding $200,000 on the last day of the tax year, or $300,000 at any time during the year.
LIVING ABROAD — MARRIED FILING JOINTLY: $400,000 on the last day, or $600,000 at any time during the year.
Form 8938 vs. FBAR (FinCEN Form 114) — Key Differences
Form 8938 (FATCA)
Filed with your tax return (Form 1040 Schedule B). Reports foreign financial assets. Higher thresholds. Penalties: $10K initial + up to $50K for continued non-filing. 40% penalty on understated tax from undisclosed assets.
FBAR — FinCEN Form 114
Filed electronically with FinCEN (not the IRS). Reports foreign financial ACCOUNTS only. Lower threshold: $10,000 aggregate. Penalties: up to $10K non-willful, greater of $100K or 50% of account balance for willful violations.
What Assets Count on 8938
Foreign bank accounts, brokerage accounts, foreign-issued stocks/securities, foreign partnerships, foreign trusts, foreign mutual funds, foreign-issued life insurance with cash value, and foreign hedge funds/private equity.
What Does NOT Count on 8938
Direct ownership of foreign real estate (but foreign entities holding real estate may count), foreign currency held directly, precious metals held directly, and personal-use assets like art, jewelry, and cars held directly.