Form 8938: How to report specified foreign financial assets

Form 8938, “Statement of Specified Foreign Financial Assets,” is an IRS form required under FATCA for U.S. taxpayers who hold specified foreign financial assets above certain thresholds. To report, you attach Form 8938 to your annual federal tax return, not as a standalone filing, and you may still need to file an FBAR separately if your foreign accounts meet FinCEN rules.

TL;DR

• Form 8938 is required for U.S. citizens, resident aliens, and certain domestic entities with foreign financial assets above set thresholds.
• Thresholds range from $50,000 for single U.S.-based filers to $600,000 for married couples filing jointly while living abroad.
• File Form 8938 with your annual tax return by the same deadline, including extensions.
• Failing to file or filing late can result in a $10,000 penalty, rising to $50,000 for continued non-compliance.
• Form 8938 and the FBAR are separate requirements—filing one does not satisfy the other.

If your personal or business finances cross borders, the IRS requires you to report them. Form 8938, or the Statement of Specified Foreign Financial Assets, is what U.S. taxpayers use to report foreign accounts and assets that exceed specific limits. Understanding the form requirements can help you avoid costly penalties and stress.

This guide covers everything you need to know about IRS Form 8938, including basic requirements, filing thresholds, and a step-by-step breakdown of each section. You’ll also find tips on how pdfFiller’s online PDF editor can help simplify the process of locating, completing, and securely storing your tax documents.

What is the IRS Form 8938?

Form 8938 is an IRS tax form introduced as part of the Foreign Account Tax Compliance Act (FATCA), which became effective for tax years starting after March 18, 2010. Under Section 6038D of the Internal Revenue Code, certain U.S. taxpayers are required to disclose specified foreign financial assets if their total value exceeds the applicable reporting threshold. According to the IRS instructions, these assets can include:

• foreign financial accounts held at a foreign financial institution
• foreign securities held directly
• foreign mutual funds
• foreign stocks
• foreign partnership interests
• interests in foreign trusts
• certain financial instruments with a foreign issuer or foreign counterparty.

You must file this form with your annual income tax return, not separately. Simply attach it to your Form 1040 (or the appropriate return for domestic entities) and submit it to the IRS as part of your regular tax filing.

Form 8938 is an informational reporting requirement. Filing it does not automatically mean you owe additional taxes. Rather, it gives the IRS visibility into foreign financial assets that may generate taxable income.

IRS Form 8938 displayed in the pdfFiller editor, where you can review, complete, and organize foreign asset reporting online.

Who needs to file Form 8938?

You must file Form 8938 if three conditions apply:

1. You are a specified person.
2. You have an interest in specified foreign financial assets.
3. The total value of those assets is more than the reporting threshold for your filing status and residence.

The IRS classifies filers who must submit Form 8938 into two categories:

Specified Individuals:

• U.S. citizens
• Resident aliens during any part of the tax year
• Nonresident aliens who choose to be treated as resident aliens to file a joint income tax return
• Nonresident aliens who are bona fide residents of American Samoa or Puerto Rico

Specified Domestic Entities:

• Domestic corporations closely held by a specified individual, where passive income or assets make up at least 50% of the total
• Domestic partnerships that meet similar passive income criteria
• Domestic trusts with one or more specified persons as a current beneficiary

One critical rule: if you are not required to file a U.S. income tax return for the tax year, you are not required to file Form 8938—even if your foreign assets exceed the applicable threshold.

What is the purpose of Form 8938?

The primary purpose of Form 8938 is financial transparency. FATCA was enacted to combat offshore tax evasion by requiring both foreign financial institutions and U.S. taxpayers to report offshore financial assets. Form 8938 is the taxpayer’s side of that reporting obligation.

Form 8938 doesn’t calculate the tax itself. Instead, it helps the IRS see whether U.S. taxpayers hold foreign financial accounts, investment accounts, entity interests, or other assets outside the United States. It links those assets to your tax return, where you report any related interest, dividends, royalties, gains, losses, deductions, or credits. If these assets generate taxable income, you must report it on the correct U.S. tax form or schedule.

By requiring disclosure of foreign financial accounts and other specified foreign assets, the IRS can cross-reference taxpayer data with information from foreign institutions. This dual-reporting system makes it significantly harder for income from foreign assets to go unreported.

When is Form 8938 due?

Form 8938 is filed with your annual tax return and shares the same due date. For most individual taxpayers filing Form 1040, that is April 15. If you get an extension on your tax return, it automatically applies to Form 8938, extending your deadline to October 15.

For corporations filing Form 1120, the due date follows the corporate return deadline. Trusts filing Form 1041 follow the same rule.

One critical point: you cannot send Form 8938 to the IRS separately from your annual return. It must be physically or electronically attached to your tax filing.

What income is reported on Form 8938?

Not all foreign assets are considered “specified foreign financial assets” under Section 6038D. The IRS defines two main categories.

Foreign financial accounts maintained by foreign financial institutions:

• Foreign bank accounts (checking and savings)
• Foreign investment accounts and foreign brokerage accounts
• Foreign mutual funds
• Certain foreign pension and retirement accounts

Other foreign financial assets held for investment outside a financial institution:

• Foreign stocks and foreign securities held directly (not in an account)
• Interests in foreign entities, including foreign partnership interests and foreign corporations
• Financial instruments or contracts with a foreign counterparty or foreign person as the issuer

Assets you don’t need to report

You don’t need to report financial accounts held at a U.S. financial institution, accounts maintained by the foreign branch of a U.S. bank, or accounts at the U.S. branch of a foreign bank on Form 8938. Foreign real estate held directly is also excluded—though foreign real estate held through a foreign entity may need to be reported.

If you have already reported a specified foreign financial asset on Form 3520, Form 3520-A, Form 5471, Form 8621, Form 8865, or Form 8891, you do not need to report it again on Form 8938. However, you do need to identify those forms in Part IV.

What are the reporting thresholds for Form 8938 (FATCA)?

The Form 8938 threshold depends on where you live and how you file.

You qualify as a taxpayer living abroad if your tax home is in a foreign country and you meet either the bona fide residence test or the physical presence test (present in a foreign country for at least 330 days during a 12-month consecutive period ending in the tax year).

Value your foreign assets at fair market value. If an asset is in a foreign currency, calculate its value in that currency first, then convert it to U.S. dollars. Use the U.S. Treasury Bureau of the Fiscal Service exchange rate to determine the maximum value of each asset.

Form 8938 vs. FBAR: What’s the difference?

This is one of the most common points of confusion for U.S. taxpayers with foreign accounts. Form 8938 (FATCA) and the FBAR (FinCEN Form 114) are two separate reporting requirements, and filing one does not satisfy the other.

The key distinction: the FBAR applies to foreign accounts only and includes accounts where you have signature authority—even if you don’t own them. Form 8938 covers a broader range of foreign assets, including foreign stocks, foreign partnership interests, and other investment instruments, but only covers assets you own or have an interest in.

Many U.S. taxpayers—especially those living or working abroad—will need to file both. Each form carries its own penalties for non-compliance, so it is important to assess your obligations for each independently.

For a deeper look at the full scope of your international reporting obligations, see our related guide on U.S. International tax and foreign account reporting.

How to fill out Form 8938

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A step-by-step guide

Here’s what each section of Form 8938 requires.

• Confirm whether you are the specified person. Check your citizenship, residency, filing status, and whether you are filing as an individual or a domestic entity. If you are unsure, review the IRS definition or speak with a tax professional.
• List all possible foreign financial assets. Include foreign bank accounts, foreign brokerage accounts, foreign mutual funds, foreign securities, foreign corporations, foreign partnerships, foreign trusts, foreign pensions, and financial contracts with a foreign counterparty.
• Separate accounts from other assets. Deposit and custodial accounts go in Part V and are summarized in Part I. Other foreign assets go in Part VI and are summarized in Part II.

Fragment of the Form 8938 (Part IV and Part V) in the pdfFiller editor, with interactive fields for reporting specified foreign financial assets and foreign deposit or custodial accounts.

• Find the maximum value. Use account statements and other reliable records to determine the maximum value during the tax year. For foreign-currency assets, convert the value to U.S. dollars and keep the exchange-rate source in your records.
• Complete the tax item summary. In Part III, enter interest, dividends, royalties, other income, gains or losses, deductions, and credits attributable to the assets. Also show the form, schedule, and line where each tax item appears.
• Use Part IV for excepted assets. If you timely reported certain assets on Forms 3520, 3520-A, 5471, 8621, or 8865, you may not need to repeat the full asset details on Form 8938. Instead, identify the number of those forms filed.
• Attach Form 8938 to your tax return. Review names, TINs, asset values, account numbers, foreign country information, and additional statements before filing.

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How to submit Form 8938

Attach Form 8938 to your annual income tax return (Form 1040, Form 1041, Form 1065, or Form 1120, depending on your entity type) and file by the applicable due date, including any extensions. Do not mail Form 8938 separately from your return.

When e-filing, submit Form 8938 electronically with your return. For paper returns, attach the form before mailing. pdfFiller also lets you send documents via USPS directly from the editor. You’ll just need to pay the delivery fee on top of your subscription.

Penalties for late filing or providing false information on Form 8938

The IRS takes Form 8938 compliance seriously. Failure to report foreign financial assets can result in significant civil and, in some cases, criminal penalties. Here’s a summary of the key penalties.

Civil penalties

• Failure-to-file penalty: If you’re required to file Form 8938 but don’t submit a complete and correct form by the due date (including extensions), you may face a penalty of $10,000 per tax year.
• Continuing failure-to-file penalty: If you don’t file a correct and complete Form 8938 within 90 days of an IRS notice, an additional $10,000 penalty applies for each 30-day period the failure continues. The maximum additional penalty is $50,000.
• Accuracy-related penalty: If you underpay your tax due to a transaction involving an undisclosed foreign financial asset, you may face a penalty equal to 40% of that underpayment—double the standard 20% accuracy-related penalty.
• Fraud penalty: If the underpayment is due to fraud, the penalty rises to 75% of the underpayment attributable to fraudulent conduct.
• Presumption of maximum value: If the IRS determines you hold a specified foreign financial asset but you don’t provide enough information to verify its value, the IRS will presume it exceeds the reporting threshold—which can trigger failure-to-file penalties even if you were unsure whether you met the threshold.
• Married taxpayers filing jointly: Penalties apply as if you and your spouse are a single person, with joint and several liability.

Criminal penalties

Besides civil penalties, failing to file Form 8938, failing to report an asset, or underpaying tax can lead to criminal penalties under Section 6038D. While rare, the risk increases significantly if you willfully hide information.

Reasonable cause exception

No penalty applies if the failure to file was due to reasonable cause and not willful neglect. You must demonstrate the facts supporting your reasonable cause claim. Note that penalties imposed by a foreign country for disclosing required information don’t constitute reasonable cause.

If you receive a CP15 notice from the IRS—the standard notice for Form eight thousand nine hundred thirty-eight penalties—you typically have thirty days to protest. Act quickly and consult a qualified tax professional.

Final thoughts

Form 8938 is one of the most important foreign asset reporting forms for U.S. taxpayers with foreign financial accounts and other specified foreign assets. The safest approach is to gather records early, calculate the aggregate value carefully, review whether FBAR also applies, and keep clear support for every maximum value and foreign currency conversion.

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