On this page
- What is IRS Form 8938?
- Who has to file Form 8938?
- What counts as a specified foreign financial asset?
- How is Form 8938 different from the FBAR?
- What happens if you don't file Form 8938?
- Where do you get Form 8938 and the instructions?
- How does Form 8938 fit with the rest of your return?
- Frequently asked questions
- Your next step
- Related reading
IRS Form 8938: Who Must File, Thresholds, and How It Differs From the FBAR
IRS Form 8938, Statement of Specified Foreign Financial Assets, is a form you attach to your annual tax return to report foreign accounts and investments when their total value passes certain thresholds. It comes from the Foreign Account Tax Compliance Act (FATCA), and it is separate from the FBAR. Here's the short version of who files it, what goes on it, and where people trip up.
What is IRS Form 8938?
Form 8938 is an information return. It doesn't calculate tax. It tells the IRS what foreign financial assets you hold so the agency can match them against the income you report.
The requirement sits in Internal Revenue Code Section 6038D. You file it once a year, attached to your income tax return (Form 1040 for most individuals), not mailed on its own. If you aren't required to file a return for the year, you generally aren't required to file Form 8938 either.
Who has to file Form 8938?
You file if you are a U.S. citizen, resident alien, or certain nonresident aliens who elect to be treated as residents, and your specified foreign financial assets exceed the threshold for your situation. The thresholds depend on your filing status and where you live.
| Situation | Year-end value above | Or any time during the year above |
|---|---|---|
| Single, living in the U.S. | $50,000 | $75,000 |
| Married filing jointly, living in the U.S. | $100,000 | $150,000 |
| Single, living abroad | $200,000 | $300,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
Married taxpayers filing separately who live in the U.S. use the single thresholds. Living abroad has its own specific tests, so check the current instructions for the tax year you're filing rather than relying on a rule of thumb.
The part people miss: the "any time during the year" test counts. An account that held $90,000 in June and $20,000 on December 31 can still trigger the form for a single filer living in the U.S.
What counts as a specified foreign financial asset?
The category is broader than bank accounts. In plain terms, it includes:
- Financial accounts held at foreign financial institutions, such as checking, savings, brokerage, and some insurance or annuity contracts with a cash value
- Foreign stock or securities that are not held in a financial account
- Interests in foreign partnerships or foreign entities
- Foreign-issued notes, bonds, or other financial instruments held directly
Some things don't belong on the form. Real estate you own directly overseas is not a specified foreign financial asset (though an entity that holds it may be). Accounts held at U.S. financial institutions generally aren't reported either, even if the account holds foreign investments.
Valuation is where mistakes happen. Assets are reported in U.S. dollars using the Treasury exchange rate for the year-end, and the instructions explain which rate to use and how to report the maximum value during the year.
How is Form 8938 different from the FBAR?
They are two different filings with different agencies, and many people with foreign accounts have to file both.
| | Form 8938 | FBAR (FinCEN Form 114) |
|---|---|---|
| Agency | IRS | FinCEN (Treasury) |
| Filed with | Your tax return | Filed electronically on its own |
| Threshold | $50,000+ and up, depending on status | $10,000 aggregate at any point in the year |
| Covers | Accounts plus other foreign assets | Foreign financial accounts |
| Due date | With your return, including extensions | April 15, with an automatic extension to October 15 |
Filing one does not satisfy the other. Because the FBAR threshold is much lower, it's common to owe an FBAR and not need Form 8938. The reverse is rare.
What happens if you don't file Form 8938?
The base penalty is $10,000 for failing to file. If the IRS sends a notice and you still don't file within 90 days, additional penalties can apply, up to a maximum of $50,000 more.
There are two other consequences worth knowing. Underpayments of tax tied to undisclosed foreign assets can carry an added 40% accuracy-related penalty. And the statute of limitations on your whole return can stay open until three years after you file the missing form, which matters if you're ever examined.
Penalties can be abated for reasonable cause, but that is an argument you make after the fact. It's easier to file correctly the first time. If you've already missed a year, IRS and state tax problem help is the right starting point, because the cleanup path depends on whether the omission was a good-faith mistake.
Where do you get Form 8938 and the instructions?
Both the form and its instructions are published free on IRS.gov. Search "Form 8938" and download the PDF for the tax year you're filing, since the instructions are revised periodically. Use the instructions for that same year, whether you're looking for the 2025 version or an older one.
Most tax software supports Form 8938, and a preparer will complete it alongside your return. If you file a late or amended return and need to add it, see how Form 1040-X works first.
How does Form 8938 fit with the rest of your return?
Foreign assets usually come with foreign income, and that income is reported separately. If you paid tax to another country, the Form 1116 foreign tax credit may reduce double taxation. The reporting forms and the income reporting should tell the same story, since the IRS can compare them.
If your foreign holdings are part of a larger picture, such as a business abroad, a sale, or a move, build the reporting into your planning early. That is the kind of work behind tax planning services, and for people who want these filings handled discreetly, our private client tax services explain how that works. Returns with foreign assets also get more scrutiny, so it helps to know what triggers an IRS audit.
Frequently asked questions
Do I file Form 8938 with my tax return or separately?
You attach it to your annual return, such as Form 1040. It isn't sent to the IRS on its own, and it follows your return's filing extension.
Do I need Form 8938 if I already filed an FBAR?
Possibly. The FBAR and Form 8938 are separate requirements with different thresholds and agencies, so meeting one does not satisfy the other.
Is a foreign bank account the only thing that counts?
No. Foreign stock held outside an account, interests in foreign entities, and certain foreign insurance or annuity contracts can also be reportable, depending on the instructions.
Is there a minimum amount below which I never file?
Yes. If your specified foreign financial assets stay under the threshold for your filing status and residence, you generally don't need Form 8938. Check the current instructions, as thresholds depend on your situation.
Can a tax professional file it for me?
Yes. A preparer can complete Form 8938 with your return, using the account statements and year-end values you provide.
Your next step
Start by listing every foreign account and foreign investment you held during the year, with the highest balance and the year-end balance for each. That one list tells you whether you cross the Form 8938 threshold, and whether an FBAR is due too.
SBZ Tax can help you sort out which filings apply. This article is general information, not tax advice for your specific situation, so talk to a qualified professional before you file. Call 818-748-2020, book a free consultation, or visit the office at 190 Sierra Ct Ste 335, Palmdale, CA 93550. We also work with clients nationwide, and you can see pricing up front.
