Form 8938: Statement of Specified Foreign Financial Assets (FATCA)
Complete guide with line-by-line instructions, deadlines, and expert tips
Download from IRS.govUS taxpayers with specified foreign financial assets exceeding $200,000 on the last day of the year or $300,000 at any time during the year (for expats; domestic thresholds are lower).
Filed with your income tax return — April 15 (June 15 for expats, October 15 with extension)
$10,000 failure-to-file penalty per year. Additional penalties of up to $50,000 for continued non-filing after IRS notification.
Overview
Form 8938 is filed under the Foreign Account Tax Compliance Act (FATCA) to report specified foreign financial assets to the IRS. While similar in concept to the FBAR, Form 8938 has higher reporting thresholds and covers a broader range of assets. For US expats living abroad, the filing threshold is $200,000 on the last day of the tax year or $300,000 at any time during the year. Specified foreign financial assets include foreign bank accounts, foreign brokerage accounts, foreign mutual funds, interests in foreign entities, foreign pension plans, and any other financial instruments held at foreign financial institutions. For US expats in Canada, this includes RRSPs, TFSAs, non-registered investment accounts, and interests in Canadian corporations or partnerships. Unlike the FBAR which is filed separately with FinCEN, Form 8938 is attached to your annual income tax return. Filing Form 8938 does not relieve you of the requirement to file the FBAR — both may be required if you meet both thresholds. The penalties for non-compliance include a $10,000 failure-to-file penalty.
When You Need This Form
- US citizen living and working in Canada with cross-border income
- American expat on a multi-year assignment abroad
- US-Canadian dual citizen managing tax obligations in both countries
- Digital nomad with US citizenship earning income internationally
- US person who recently moved abroad and is navigating international tax compliance
Line-by-Line Instructions
Part I - Identification and Basic Information
Enter your full legal name, Social Security Number, and address exactly as they appear on your Form 1040 or other primary tax return.
Indicate the tax year for which this form is being filed and your filing status. Ensure consistency with your primary return.
Provide details specific to the Form 8938 filing requirement, including any entity names, account numbers, or identification details as applicable.
Part II - Income, Amounts, or Transaction Details
Enter the relevant amounts for your Form 8938 filing. Convert any foreign currency amounts to US dollars using the appropriate exchange rate.
Complete the supporting calculations as required. Cross-reference amounts with other forms and schedules on your return for consistency.
Apply any applicable adjustments, limitations, or modifications as specified in the form instructions. Ensure calculations are accurate.
Part III - Summary and Certification
Calculate the final totals and note any amounts that may be carried forward to future tax years or carried back to prior years.
Sign and date the form. If filing jointly with a spouse, both signatures may be required. Keep a copy for your records.
If a paid preparer assisted with this form, their information must be included in the designated section.
Expert Tips
- Keep organized records throughout the year to simplify the Form 8938 filing process at tax time
- Use the IRS-published exchange rates for consistent currency conversions across all your forms
- Review the official IRS instructions for Form 8938 each year as requirements may change
- Consider working with a cross-border tax specialist like Zenith Financial Advisors for complex situations
- File electronically when possible for faster processing and confirmation of receipt
Common Mistakes to Avoid
- Filing Form 8938 late or not at all, which can trigger penalties even if no tax is owed
- Using incorrect exchange rates when converting foreign currency amounts to US dollars
- Not cross-referencing amounts with related forms and schedules on your tax return
- Failing to keep adequate records and supporting documentation for the reported amounts
- Not considering how Form 8938 interacts with other international tax forms required for expats
Related Forms
Frequently Asked Questions
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