What Is Form 8938?
The Statement of Specified Foreign Financial Assets is a US FATCA disclosure form under which specified individuals and certain entities report foreign assets above thresholds.
Also known as: Statement of Specified Foreign Financial Assets, FATCA Form 8938.
How Form 8938 works
Form 8938 is filed by specified individuals, including US citizens, resident aliens and certain nonresident aliens, and by certain domestic entities, when the total value of their specified foreign financial assets exceeds a threshold that depends on filing status and on whether the taxpayer lives in the United States or abroad. For taxpayers living abroad, the IRS sets thresholds of 200,000 dollars at year end or 300,000 dollars at any time for single filers, and 400,000 or 600,000 dollars for joint filers, compared with much lower thresholds for residents of the United States. Assets in scope include foreign bank and securities accounts, foreign shares held outside an account, foreign partnership interests, foreign funds and foreign cash-value insurance, whereas directly held foreign real estate, foreign currency and precious metals are outside the form. Form 8938 is attached to the annual income tax return and is due with it, including extensions. Failure to file can lead to a penalty of up to 10,000 dollars, increasing after IRS notice up to 60,000 dollars, and criminal penalties may also apply, so thresholds and definitions are checked against the current form instructions each year.
Form 8938 vs Report of Foreign Bank and Financial Accounts (FBAR)
Unlike the FBAR, which is filed with FinCEN when aggregate foreign accounts exceed 10,000 dollars at any time, Form 8938 is filed with the income tax return, uses higher thresholds and also covers certain non-account assets. The two filings overlap, and filing one generally does not replace the other.
| Form 8938 | Report of Foreign Bank and Financial Accounts (FBAR) | |
|---|---|---|
| Where filed | Attached to the annual income tax return filed with the IRS | Filed electronically through the FinCEN BSA E-Filing System |
| Threshold for single filers abroad | Above 200,000 dollars at year end or 300,000 dollars at any time | Aggregate foreign accounts above 10,000 dollars at any time |
| Assets covered | Accounts plus foreign securities, partnership interests and funds held outside accounts | Foreign financial accounts, including signature authority, but not directly held securities |
Example
Illustrative example: A single US citizen living in Country A holds a local current account, a brokerage account with Country A shares and funds, and a direct shareholding in a private Country A company. At year end the combined value is above the 200,000-dollar threshold for taxpayers abroad, so the investor attaches Form 8938 to the US return and lists each specified foreign financial asset with its maximum value. Because the bank and brokerage accounts together also exceed 10,000 dollars, an FBAR is filed separately with FinCEN for those accounts. The private shareholding appears on Form 8938 but not on the FBAR, and if the company is a controlled foreign corporation, Form 5471 may also apply, while any Country A funds held may raise separate PFIC reporting on Form 8621. Thresholds are tested on the combined value of all specified assets, so a year with a high mid-year balance can trigger filing even where the year-end total is lower.
Common misconception
Myth: Filing the FBAR satisfies all US foreign asset reporting.
Reality: Form 8938 is a separate IRS filing with its own thresholds and asset categories, so a taxpayer above both thresholds generally files both Form 8938 and the FBAR.
Frequently asked questions
Who needs to file Form 8938?
Form 8938 is filed by specified individuals, including US citizens, resident aliens and certain nonresident aliens, and by certain domestic entities, whose specified foreign financial assets exceed the threshold for their filing status and residence.
What is the difference between Form 8938 and FBAR?
Form 8938 is attached to the income tax return, uses higher thresholds and covers some non-account assets, whereas the FBAR is filed with FinCEN for foreign accounts above 10,000 dollars in aggregate at any time.
What is the Form 8938 threshold for US citizens living abroad?
For taxpayers living abroad, the IRS sets the Form 8938 threshold at more than 200,000 dollars at year end or 300,000 dollars at any time for single filers, and 400,000 or 600,000 dollars for joint filers.
Does foreign real estate go on Form 8938?
Foreign real estate held directly is not reported on Form 8938 according to the IRS, although an interest held through a foreign entity can make the entity interest itself a specified foreign financial asset.
Related terms
- Report of Foreign Bank and Financial Accounts (FBAR) — Parallel FinCEN filing most often confused with Form 8938
- FATCA (Foreign Account Tax Compliance Act) — Statute that created the Form 8938 requirement
- Form 8621 — PFIC reporting that may accompany Form 8938
- Form 5471 — Foreign corporation reporting for qualifying US owners
- Streamlined Filing Compliance Procedure — IRS route for late filings by non-wilful taxpayers
Related guides
- Global tax reform and US digital nomads — US nomads facing FATCA and FBAR duties
- Accounting and bookkeeping for digital nomads — Record-keeping supporting foreign asset reporting
Sources
Last verified: 2026-10-08. This entry is general information, not tax or legal advice; rules vary by country and change over time.
