FATCA Compliance for US Expats: Form 8938 Filing by a US CPA
If your foreign accounts, pensions or investments pass the IRS threshold — $200,000 at year-end for a single filer abroad, $400,000 for joint filers — Form 8938 must be attached to your tax return, separately from your FBAR. We prepare both from one set of account data, so nothing is missed and nothing is reported twice.
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What Is FATCA, and Why Do You Have to File Form 8938?
FATCA, the Foreign Account Tax Compliance Act enacted in 2010, works in two halves. Foreign banks must report their US customers to the IRS, and US taxpayers with enough foreign assets must report those assets themselves on Form 8938, the Statement of Specified Foreign Financial Assets, attached to their annual Form 1040.
Most Americans abroad find out about Form 8938 sideways. A bank in Lisbon or Singapore asks for a US tax ID, or a preparer mentions in passing that the FBAR (FinCEN Form 114) is not the only foreign-account form. Then comes the real question: did I already miss this? It starts with one fact. Form 8938 is a different filing from the FBAR, with a different agency, different thresholds and different penalties. Filing one does not satisfy the other.
Mark Anderson, CPA is a US-licensed CPA with 15+ years of experience and a Fortune 500 corporate tax background. He prepares Form 8938 and the FBAR from the same account data for US citizens in 50+ countries, so the two filings always agree with each other and with your Form 1040.
Quick answer
- Who files: US citizens and residents who must file a tax return and whose specified foreign financial assets exceed the threshold for their filing status and residence.
- Threshold abroad: more than $200,000 at year-end or $300,000 at any time (single); $400,000 or $600,000 (joint).
- How it is filed: attached to Form 1040, due with the return including extensions.
- Penalty: $10,000 for not filing, up to $50,000 more after an IRS notice, plus 40% on understatements tied to undisclosed assets.
Who Must File Form 8938? FATCA Thresholds for Americans Abroad
You must file Form 8938 if you have to file a US return and your specified foreign financial assets total more than the threshold for your filing status and where you live. There are two tests, the value on the last day of the tax year and the highest value at any time during the year, and passing either one triggers the filing.
| Filing status and residence | Last day of tax year | Any time during tax year |
|---|---|---|
| Living abroad: single or married filing separately | $200,000 | $300,000 |
| Living abroad: married filing jointly | $400,000 | $600,000 |
| Living in the US: single | $50,000 | $75,000 |
| Living in the US: married filing jointly | $100,000 | $150,000 |
| Living in the US: married filing separately | $50,000 | $75,000 |
Who counts as “living abroad” for the higher thresholds?
The IRS applies the higher thresholds to US citizens whose tax home is in a foreign country and who are bona fide residents of a foreign country for the entire tax year, and to US citizens or residents who are physically present abroad at least 330 days in any 12-consecutive-month period ending in the tax year. These are the same residence and presence tests used for the Foreign Earned Income Exclusion.
- The thresholds apply to the total of all your specified foreign financial assets, not to each account.
- Values are converted to US dollars using the rules in the Form 8938 instructions.
- If you are not required to file a Form 1040 for the year, you do not file Form 8938 either.
- Owing no US tax does not matter. Form 8938 is an information return.
Quick Form 8938 threshold check
Enter the combined US-dollar value of all your foreign accounts and investments. This is a screening tool, not a filing determination.
Illustrative example: when a “modest” foreign portfolio crosses the line
A single US citizen lives and works abroad as a bona fide resident. At year-end she holds $55,000 in a local bank account, $110,000 in a local brokerage account and $45,000 in an employer pension, a total of $210,000. That is over the $200,000 year-end threshold, so Form 8938 is required with her Form 1040, and an FBAR as well. The same balances held by a single filer living in the US would have crossed the line at $50,000. (Illustrative scenario for explanation only, not a client case.)
The detail people miss is that the pension and the brokerage fund holdings count even though nothing was “sold” and no income was withdrawn. That is also where Form 8621 (PFIC) reporting can enter the picture, which is why we look at asset types, not just balances.
What Assets Do You Report on Form 8938?
Form 8938 covers specified foreign financial assets: foreign financial accounts plus foreign investment assets held outside any account. That is wider than the FBAR in some ways and narrower in others.
Generally reportable
- Foreign bank, savings and checking accounts
- Foreign brokerage and investment accounts, including mutual funds and ETFs held in them
- Foreign pension and retirement accounts
- Foreign stocks and bonds held directly, outside an account
- Interests in foreign corporations, partnerships and other foreign entities
- Foreign insurance or annuity contracts with a cash value, issued by a non-US insurer
Generally not reported on Form 8938
- Foreign real estate owned directly in your own name
- Cash, gold, art and other tangible items held directly
- Accounts held with US payors, such as a US bank or US brokerage
- Interests in foreign government social insurance-type programs
- Assets already reported on Forms 3520, 3520-A, 5471, 8621, 8865 or 8891. They still count toward the threshold.
- Accounts where you only have signing authority and no financial interest
Edge cases are where mistakes happen. A foreign company that owns your rental property, a pension that behaves like a trust, or a foreign fund that is a PFIC can each change which form carries the reporting. We sort that out before anything is filed. This page is general information; your facts decide the answer.
FATCA Form 8938 vs. FBAR (FinCEN Form 114): What Is the Difference?
They are two separate filings with different agencies, thresholds, deadlines and penalties, and many Americans abroad must file both. The same foreign account can appear on each form. Filing one never replaces the other.
| Feature | Form 8938 (FATCA) | FBAR (FinCEN Form 114) |
|---|---|---|
| Filed with | The IRS | FinCEN (US Treasury) |
| How it is filed | Attached to your Form 1040 | E-filed separately through FinCEN BSA E-Filing. It is not part of your tax return. |
| Threshold (living abroad) | Over $200,000 year-end or $300,000 any time (single); $400,000 or $600,000 (joint) | Foreign accounts total over $10,000 at any time during the year |
| What it covers | Financial accounts and foreign investment assets held outside accounts | Financial accounts only, including accounts where you only have signing authority |
| Deadline | With your return: April 15, automatic extension to June 15 for taxpayers abroad, October 15 with Form 4868 | April 15, automatic extension to October 15 |
| Penalty for not filing | $10,000, up to $50,000 more after IRS notice, 40% on related understatements | Non-willful: up to $16,536 per annual report. Willful: the greater of $165,353 or 50% of the account balance. Amounts are inflation-adjusted each year (figures shown for penalties assessed on or after January 17, 2025). |
| Reasonable-cause relief | Yes | Yes |
Two details that older articles get wrong: a US Supreme Court ruling in Bittner v. United States (2023) held that the non-willful FBAR penalty applies per annual report, not per account; and the continuing Form 8938 penalty is not “$10,000 a month”. It only begins after an IRS notice and stops at $50,000. Need the FBAR side? See our FBAR filing services.
What Happens If You Do Not File Form 8938?
The base penalty is $10,000 per failure to file, and it can grow after the IRS contacts you. The numbers below come straight from the IRS, and they are stated here so you can judge the risk, not to alarm you. Most Americans who missed Form 8938 were never told it existed, and there are structured ways back.
Initial penalty
Charged for failing to file a required Form 8938 on time.
After IRS notice
Additional penalties of up to $50,000 if you keep not filing after the IRS notifies you.
Understatement penalty
Applied to any tax understated because of an undisclosed foreign asset.
The quieter consequence: an open statute of limitations
If you do not file or properly report an asset on Form 8938, the period the IRS has to assess tax for that year stays open until three years after you provide the missing information. The period stretches to six years if you omit more than $5,000 of income tied to a foreign asset. Where the failure was due to reasonable cause, the extension applies only to the items involved rather than the whole return.
No penalty applies when you can show the failure was due to reasonable cause and not willful neglect. The IRS decides that case by case, and a well-documented statement matters. If you have already received a penalty notice, see our IRS penalty abatement service.
Your Foreign Bank Asked About FATCA. Is That the Same as Form 8938?
No. The request from your bank is the bank’s own FATCA duty, and Form 8938 is yours. Foreign financial institutions must identify account holders who are US persons and report them under FATCA, directly or through their own government. That is why a bank may ask for your US taxpayer ID and a self-certification or Form W-9, sometimes with a deadline and a warning about restrictions on the account.
- Answering the bank does not file anything with the IRS on your behalf.
- The IRS can match what banks report about you against what you disclose, so a Form 8938 or FBAR that is missing, or that disagrees with the bank’s numbers, is easier to spot than it used to be.
- If you ignore bank requests, an account can be restricted or closed. Responding promptly is the safe route.
- If the request is what first told you about US reporting, go to the missed-years section below before filing anything. How you catch up matters.
Not sure whether your bank’s letter means you owe something? Send it to Mark in a free consultation and he will tell you what applies.
What Is Included When Mark Prepares Your Form 8938
Because Form 8938 attaches to your Form 1040, we prepare it as part of your annual US expat tax return, with the FBAR built from the same data.
- Review of every foreign account and asset to decide what is reportable, and on which form
- Threshold testing on both the year-end and the any-time tests
- Currency conversion to US dollars handled consistently across all forms
- Form 8938 prepared and attached to your Form 1040
- FBAR (FinCEN Form 114) prepared from the same data and e-filed
- Coordination with Forms 8621 (PFIC), 5471 and 3520 so assets are not double-reported or missed
- FEIE and Foreign Tax Credit planning on the same return
- Reasonable-cause statement for any late or missed filing
- Year-round support, including when your bank or the IRS writes to you
A US CPA Who Files Foreign-Asset Reports for a Living
Form 8938 is rarely the only issue. It usually shows up alongside an FBAR, a pension, a foreign company or a few unfiled years. Mark’s practice is built for that combination.
Licensed US CPA on every return
A US-licensed CPA reviews your filing personally, not an offshore contractor. See Mark’s credentials and background.
Fortune 500 corporate tax background
15+ years of experience, now focused exclusively on Americans abroad.
One data set, every form
Form 8938, FBAR, PFIC and entity forms are prepared together so the numbers agree.
A route back if you are behind
Streamlined procedures and reasonable-cause relief, chosen for your facts.
Flat fees, quoted in advance
No hourly surprises. See current rates.
Worldwide and fully online
Clients in 50+ countries. No in-person meeting is ever needed.
| What matters | Typical DIY software | Mark Anderson, CPA |
|---|---|---|
| Decides what is reportable | You decide | CPA decides, with you |
| FBAR and Form 8938 reconciled | Separate, self-managed | Prepared from one data set |
| PFIC, pension and entity coordination | Limited guidance | Included in review |
| Missed prior years | Not addressed | Guided catch-up path |
| Fee | Software price plus your time | Flat fee quoted up front |
What we handle and what we do not: we prepare US federal filings. Your local-country tax and legal questions need a local adviser, and US state returns may be a separate engagement.
Form 8938 Filing Cost: Flat Fees, Quoted Before We Start
Form 8938 is prepared with your Form 1040, so it is quoted as part of one flat fee. After a free 30-minute consultation you receive a written quote based on your actual accounts and income. Work begins with a 50% deposit and the balance is due before filing. Full details are on our expat tax rates page.
Employee abroad (W-2)
Form 1040 with FEIE or Foreign Tax Credit. Form 8938 and FBAR are added to the quote where required.
Self-employed or business owner
Schedule C and self-employment tax, plus Form 8938, FBAR and any entity forms.
Catch-up filing, several years
Missed years of returns, FBARs and Forms 8938, filed under the right IRS procedure.
How to Get Your Form 8938 Filed: 4 Steps
- 1
Free consultation
A 30-minute call or message thread with Mark about where you live, what you hold abroad and which years are open. Schedule yours.
- 2
Flat-fee quote
You receive a written, fixed quote. No hourly billing.
- 3
Send account details
We tell you exactly what to collect: year-end balances, the highest balance in the year, account types and ownership. No guesswork.
- 4
Review and file
Form 8938 is attached to your Form 1040, the FBAR is e-filed, and you get copies of everything for your records.
Missed Form 8938 in earlier years? You are not alone.
File before the IRS contacts you. If you missed the form because you did not know about it, the IRS Streamlined Filing Procedures let eligible Americans living abroad file the last three years of returns, six years of FBARs and a Form 14653 certification, with no penalty for eligible taxpayers abroad. If your returns were filed but the form was left out, a reasonable-cause statement may be the cleaner route.
FATCA and Form 8938: Questions Americans Abroad Ask
What is the FATCA threshold for Americans living abroad?
For a single filer or married filing separately living abroad, Form 8938 is required when specified foreign financial assets exceed $200,000 on the last day of the tax year or $300,000 at any time during the year. For married couples filing jointly abroad, the numbers are $400,000 and $600,000. Assets are totaled across all accounts and investments and converted to US dollars. If you live in the US, the thresholds are much lower: $50,000 and $75,000 for a single filer.
Do I have to file both an FBAR and Form 8938?
Possibly. They are separate filings and many expats owe both. The FBAR (FinCEN Form 114) is required when your foreign accounts total more than $10,000 at any time in the year. Form 8938 applies only once you pass the higher FATCA threshold. A single expat with $60,000 in a foreign bank account files an FBAR but not Form 8938; one with $250,000 abroad files both. The same account can appear on each form, and filing one never replaces the other.
What assets do I report on Form 8938?
Foreign financial accounts (bank, brokerage, pension and retirement accounts) and foreign investment assets held outside an account, such as foreign stock or securities held directly, interests in foreign partnerships or corporations, and certain foreign insurance contracts with cash value. Foreign real estate you own directly is not reported on Form 8938, though a foreign entity that owns it can be. Assets already reported on Forms 3520, 3520-A, 5471, 8621, 8865 or 8891 do not have to be repeated, but they still count toward the threshold.
What is the penalty for not filing Form 8938?
The penalty is $10,000 for failing to file. If the IRS notifies you and you still do not file, additional penalties of up to $50,000 can apply. There is also a 40% penalty on any understatement of tax tied to foreign assets you did not disclose. The figure of $10,000 per month that circulates online is not the base penalty: the continuing penalty only starts after an IRS notice and stops at $50,000. No penalty applies when the failure is due to reasonable cause and not willful neglect.
Is Form 8938 filed with my tax return, or separately like the FBAR?
With your tax return. Form 8938 is attached to your annual Form 1040 and is due when the return is due, including extensions. For Americans abroad that means April 15 with an automatic extension to June 15, and October 15 if you file Form 4868. The FBAR is different: it is e-filed separately with FinCEN, due April 15 with an automatic extension to October 15.
My foreign bank sent me FATCA forms. Is that the same as Form 8938?
No. The paperwork your bank sends, usually a request for your US taxpayer ID and a self-certification or Form W-9, is the bank's own FATCA obligation to identify US account holders. Answering it does not file anything with the IRS on your behalf. Form 8938 is your separate reporting duty, and the bank's data can be matched against what you report, so the two should agree.
Does the Foreign Earned Income Exclusion reduce what I report on Form 8938?
No. The FEIE (Form 2555) reduces your taxable income, not your asset reporting. Form 8938 depends on the value of the assets you hold, so money you earned abroad and excluded from tax still counts toward the threshold once it sits in an account.
Do I report foreign real estate on Form 8938?
Not if you own the property directly. Foreign real estate held in your own name is not a specified foreign financial asset. If you hold it through a foreign company, partnership or trust, your interest in that entity is reportable and may also trigger Form 5471, 8865 or 3520. Rental income and gains from the property remain taxable on your Form 1040, and a foreign bank account holding rent or sale proceeds is reportable.
I missed Form 8938 for several years. What should I do?
File the missing forms before the IRS contacts you. If your failure was non-willful, meaning you did not know about the requirement, the Streamlined Foreign Offshore Procedures let you file the last three years of returns (with Form 8938 where required), six years of FBARs and a certification on Form 14653, with no penalty for eligible taxpayers living abroad. If you filed returns but left out the form, a reasonable-cause statement or penalty abatement request may be the better route.
Do I need to file Form 8938 if I owe no US tax?
Yes, if you are required to file a return and you exceed the threshold. Form 8938 is an information return, so whether you owe tax is irrelevant. If you are not required to file a Form 1040 for the year, Form 8938 is not required either. Many expats owe no US tax because of the FEIE or the Foreign Tax Credit and still have to file Form 8938 and an FBAR.
Official sources
Thresholds, penalties and statute-of-limitations rules on this page are drawn from IRS guidance. Check the current instructions before you file, because amounts and procedures can change.
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