Overview
Form 8938 is used to report specified foreign financial assets when the total value is above the reporting threshold that applies to the taxpayer.
This article helps readers understand that Form 8938 and FBAR are related but different reporting systems, with different filing destinations and rules.
What to review
Review citizenship or residency status, filing history, foreign income, foreign taxes paid, foreign accounts, currency conversion, and whether any IRS notice or foreign-account reporting deadline is active.
Practical steps
- Identify foreign financial accounts and other specified foreign financial assets.
- Compare the asset list to Form 8938 instructions.
- Check whether the asset was already reported on another required international form.
- Coordinate Form 8938 with the income tax return filing.
Risks to understand
- Form 8938 does not replace FBAR.
- Thresholds can vary by filing status and where the taxpayer lives.
- Missing international information forms can create separate penalties.
Documents to gather
- Foreign wage or self-employment records
- Foreign tax returns
- Foreign bank account records
- Prior U.S. returns
- IRS notices
- Currency conversion notes
Possible next steps
Start by confirming whether a U.S. return, FBAR, Form 8938, or late-filing cleanup path is required before choosing a credit, exclusion, or compliance procedure. Depending on your situation, options may include filing missing returns, requesting a payment plan, exploring hardship status, asking for penalty relief, appealing a proposed action, or consulting a credentialed tax professional.
When to get professional help
Get help if foreign entities, trusts, pensions, life insurance, or multiple asset types are involved.
Related search terms
Form 8938, FATCA, specified foreign financial assets