FATCA (Form 8938) — Foreign financial assets disclosure
FATCA (Foreign Account Tax Compliance Act) is a 2010 law requiring US persons with significant foreign financial assets to report to the IRS using Form 8938 (Statement of Specified Foreign Financial Assets) alongside their annual tax return.
Who must file Form 8938?
US Persons (citizens, permanent residents, tax residents) whose foreign financial assets exceed these thresholds:
If living IN US
- Single: $50,000 at year-end OR $75,000 at any point
- Married filing jointly: $100,000 year-end OR $150,000 at any point
- Married filing separately: $50,000 year-end OR $75,000 at any point
If living OUTSIDE US
Higher thresholds:
- Single: $200,000 year-end OR $300,000 at any point
- Married filing jointly: $400,000 year-end OR $600,000 at any point
What gets reported?
“Specified foreign financial assets” includes:
- Foreign bank accounts
- Stocks or securities of foreign companies (not in US brokerage accounts)
- Interests in foreign partnerships
- Annuities or insurance contracts with cash value at foreign insurer
- Any financial instrument issued by non-US institution
❌ NOT included:
- Directly-owned assets (not via financial institution): physical real estate, art, jewelry, physical gold
- Accounts at US branches of financial institutions
- Personal liabilities
When and how to file
- Attached to your Form 1040 (not separate like FBAR)
- Same deadline as 1040: April 15 (June 15 if living abroad with auto-extension)
- Extension via Form 4868: until October 15
Penalties for not filing
- Initial: $10,000 USD for non-filing
- Continuation: $10,000 additional every 30 days after IRS notice (max $50,000)
- 40% understatement penalty on any unpaid tax for unreported assets
- 75% fraud penalty if non-filing was intentional
FATCA + foreign banks
FATCA also requires foreign banks to report US Persons’ accounts to IRS. This is why increasingly more banks abroad:
- Close accounts of US Persons
- Refuse to open new accounts for US Persons
- Require W-9 forms and FATCA certification at opening
This affects US expats especially in Europe and Asia. US-expat-banking-friendly countries: Mexico, Costa Rica, Panama, Colombia, Spain are usually more accessible than Germany, Switzerland, France.
Key FATCA vs FBAR differences
| Item | FATCA (Form 8938) | FBAR (FinCEN 114) |
|---|---|---|
| Agency | IRS | FinCEN |
| Thresholds | $50K+ to $600K+ | $10,000 aggregated |
| Reports | Broader financial assets | Just bank/financial accounts |
| How to file | Attached to 1040 | Separate BSA E-Filing |
| Deadline | Same as 1040 | April 15 (auto-ext Oct 15) |
| Penalties | Up to $50K + tax penalties | Up to 50% of balance (willful) |
Many people must file BOTH.
Related information
Official source: IRS — FATCA Reporting
Last verified: 2026-05-24.
General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.
Related procedural information
- USCIS Form I-407 — abandonment of LPR status — formal renunciation procedure
- IRS tax obligations as a US citizen abroad — citizens file regardless of residence
- Social Security totalization agreements — avoiding double SS coverage
- Find an international tax attorney — for renunciation and exit-tax cases
- Consulate of your destination country — pre-departure documentation