Form 8938 Explained: FATCA Foreign-Asset Reporting for US Expats

Form 8938 is the IRS form you attach to your tax return to report foreign financial assets under FATCA — the Foreign Account Tax Compliance Act, passed in 2010. In plain terms: it tells the IRS "I own these foreign assets." It's an informational report, not an extra tax — but skipping it when you were required to file carries steep penalties.

Who has to file

You file Form 8938 if you're a US person and your specified foreign financial assets exceed the threshold for your filing status and where you live. For Americans living abroad:

• Single (or married filing separately): more than $200,000 on the last day of the year, or more than $300,000 at any point during the year.
• Married filing jointly: more than $400,000 at year-end, or more than $600,000 at any point.

(Thresholds are lower for people living inside the US.) These are far higher than the FBAR's $10,000 line — which is exactly why many expats file an FBAR but not an 8938.

What counts as a "specified foreign financial asset"

• Foreign bank accounts
• Foreign brokerage and investment accounts
• Foreign stocks and securities held directly (not inside an account)
• Interests in foreign entities (corporations, partnerships, foreign LLCs)
• Foreign-issued life insurance or annuity contracts with a cash value

What does NOT count: Foreign real estate owned directly in your own name is not reportable on Form 8938 (it's not a financial asset). But if you hold that property through a foreign entity, your interest in the entity is reportable.

The penalties

Failing to file Form 8938 when required starts at a $10,000 penalty, and can climb to $50,000 for continued non-compliance after IRS notice. There can also be accuracy-related penalties on any underpaid tax tied to unreported assets. The form itself costs nothing to file — the expense is in skipping it.

How it's filed

Form 8938 is attached to your Form 1040 and filed with your normal return — due June 15 for expats (the automatic 2-month extension), or October 15 with a further extension. One important detail: any income from the assets you report must also appear on the correct schedules of your return. The asset report and the income reporting go together.

Form 8938 vs. the FBAR — don't confuse them

They overlap but they're separate: FBAR goes to FinCEN at a $10,000 threshold; Form 8938 goes to the IRS at $200,000+. Many expats owe both. For the full side-by-side, see our FBAR vs Form 8938 guide.

The bottom line

If your foreign financial assets are well under $200,000, you probably don't file Form 8938 at all — but you may still owe an FBAR (check with our ClearFBAR tool). If you're above the threshold, Form 8938 is mandatory, and the penalties for ignoring it are serious. When you're near the line or holding assets through foreign entities, get it checked.

Valuing assets, classifying entity interests, and matching income to a reported asset are where Form 8938 gets technical. Greenback's CPAs and IRS Enrolled Agents handle FATCA reporting day in and day out.

This article is educational and is not tax or legal advice. Confirm current thresholds and penalties on the official IRS Form 8938 page or with a qualified tax professional.