Form 8938 / FATCA reporting
Foreign financial assets can create reporting inside your U.S. tax return.
Form 8938 is used by certain U.S. taxpayers to report specified foreign financial assets when the applicable requirements are met.
Whether the form is required depends on the taxpayer's filing status, residence, assets, values, ownership, and other facts.
FileAbroad prepares Form 8938 when it applies to an accepted federal income-tax return engagement.
Reviewed with the federal return · Foreign assets organized · Client review before filing
The form
What Form 8938 is
Form 8938, Statement of Specified Foreign Financial Assets, is filed with the federal income-tax return when a specified individual or other specified person has reportable specified foreign financial assets above the applicable reporting threshold.
Depending on the facts, specified foreign financial assets can include foreign financial accounts and certain other foreign financial interests that are not held in a financial account.
The reporting analysis depends on what the asset is, how it is owned, where it is held, its value, and the taxpayer's filing circumstances.
Two reporting systems
Form 8938 and FBAR are separate requirements.
Form 8938 is an IRS form filed with the federal income-tax return. The FBAR, FinCEN Form 114, is a separate foreign financial-account report filed through FinCEN.
The two reporting systems have different rules, definitions, thresholds, and filing procedures.
Depending on the taxpayer's facts, an asset or account may be relevant to one filing, both filings, or neither.
Preparation
What an accepted Form 8938 engagement may include
Form 8938 preparation is coordinated with the federal return and the other international reporting included in the engagement.
Asset inventory
Organization of the foreign financial accounts and other specified foreign financial assets relevant to the accepted Form 8938 preparation.
Ownership and value review
Review of the ownership and valuation information provided for the assets included in the engagement.
Coordination with the return
Preparation of Form 8938 in the context of the accepted federal income-tax return and related reporting.
Cross-check with FBAR when applicable
Comparison with foreign financial accounts included in an accepted FBAR engagement so the two separate filings are prepared from consistent account information.
Client review
You review the completed Form 8938 with the return before filing.
Other international reporting
Some foreign assets raise additional questions.
Form 8938 does not replace other international information-reporting requirements.
Foreign corporations, partnerships, trusts, gifts, investment funds, pensions, and other cross-border arrangements can raise reporting issues beyond Form 8938 itself.
Lifetime gifts from abroad may trigger Form 3520 or 708 questions that should be mapped before any Form 8938 scope is written. You can start a foreign gift consultation to review donor, transfer, and reporting questions.
Tell me about those facts during the intake. I will determine whether the work fits FileAbroad, requires a separately defined engagement, or should be handled by another professional.
The process
How it works
- 1
Tell me about the foreign assets.
Start with the intake and describe the broad categories of foreign accounts, investments, entities, or other assets involved without sending sensitive financial documents.
- 2
Consultation and screening.
We review the filing status, residence, ownership, asset types, and other facts needed to determine the preparation path.
- 3
Scope and records.
If FileAbroad can accept the work, I confirm the return, reporting forms, records, scope, and price before preparation begins.
- 4
Secure document collection.
I provide the records checklist and secure upload instructions for the accepted engagement.
- 5
Preparation and review.
I prepare Form 8938 with the accepted return and you review the completed reporting before filing.
Before you start
Questions about Form 8938
Is Form 8938 the same as an FBAR?
No. Form 8938 is filed with the federal income-tax return, while the FBAR is a separate report filed through FinCEN. The two requirements use different rules and may both apply to the same taxpayer.
Are the Form 8938 thresholds different for taxpayers living abroad?
Yes. The applicable reporting thresholds depend in part on filing status and whether the taxpayer is considered to be living abroad under the Form 8938 rules. I review the applicable facts before preparing the form.
Does every foreign asset belong on Form 8938?
No. Form 8938 applies to specified foreign financial assets, and the reporting treatment depends on the type of asset, ownership, value, and other facts. Foreign property or an interest outside a financial account should not be assumed to be reportable or nonreportable without considering what the asset actually is.
If I file an FBAR, do I still need Form 8938?
Possibly. Filing one does not automatically eliminate the other requirement. The two reporting systems need to be considered separately.
Can FileAbroad prepare Form 8938 without preparing my federal return?
FileAbroad generally prepares Form 8938 in connection with an accepted federal income-tax return engagement because Form 8938 is filed with the return. If you have a different situation, describe it during the intake so I can determine whether the work fits the practice.
What if I own a foreign company, trust, partnership, or investment fund?
Tell me during the intake. Those arrangements can raise reporting issues beyond Form 8938 and may require additional screening, a separately defined engagement, or another professional.
Primary source
Current IRS Form 8938 guidance
The IRS publishes the current Form 8938 instructions and guidance covering specified foreign financial assets, reporting thresholds, valuation, exceptions, and filing requirements.
Start here
Tell me about the foreign assets involved.
You don't need to determine the Form 8938 reporting result before contacting me. Tell me where you live, how you file, and the broad types of foreign accounts, investments, entities, or other assets involved. I'll review whether FileAbroad appears to be the appropriate next step.
Tell Me About My SituationPrefer email? info@fileabroad.com
Do not send bank statements, account numbers, Social Security numbers, tax returns, or other sensitive tax documents through the public intake form or ordinary email.