What is FATCA Form 8938?

FATCA Form 8938, officially titled Statement of Specified Foreign Financial Assets, is an IRS form that US taxpayers use to report their foreign financial assets when those assets exceed certain thresholds. FATCA stands for the Foreign Account Tax Compliance Act, which was enacted in 2010 as part of the HIRE Act.

The reporting thresholds for Form 8938 vary depending on your filing status and whether you live in the US or abroad. For expats filing single, you must file if your foreign assets exceed $200,000 on the last day of the tax year or $300,000 at any time during the year. For expats filing jointly, the thresholds are $400,000 on the last day or $600,000 at any time. These thresholds are significantly higher than the $10,000 FBAR threshold, which is why some taxpayers must file FBAR but not Form 8938.

Form 8938 covers a broader range of assets than FBAR. In addition to financial accounts, you must report: foreign stock or securities not held in a financial account, foreign partnership interests, foreign mutual funds, foreign hedge funds and private equity funds, foreign financial instruments or contracts, and interests in foreign entities. Essentially, any foreign financial asset that could generate income must be reported.

Unlike FBAR, Form 8938 is filed as an attachment to your annual tax return (Form 1040), not separately. It follows the same filing deadline as your return, including any extensions. If you are not required to file a tax return, you are not required to file Form 8938.

Penalties for non-compliance include a $10,000 failure-to-file penalty, with an additional $10,000 for each 30-day period of continued non-filing after IRS notice, up to a maximum of $60,000. There is also an extended statute of limitations and a 40% penalty on any understatement of tax attributable to undisclosed foreign financial assets.

Filing Form 8938 does not exempt you from FBAR requirements — both may be required for the same accounts.