FATCA Information for Individuals

 
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  • Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS generally using Form 8938, Statement of Specified Foreign Financial Assets. The aggregate value of these assets must exceed $50,000 to be reportable, in general,  but in some cases, the threshold may be higher.
     
  • The Form 8938 must be attached to the taxpayer’s annual tax return.
     
  • U.S. taxpayers who do not have to file an income tax return for the tax year do not have to file Form 8938, regardless of the value of their specified foreign financial assets.
     
  • You may also have to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
     
  • This comparison table will help you figure out whether you  need to file Form 8938, the FBAR, or both.
     
  • You should review the instructions for Form 8938 to determine if an exception to the reporting requirement applies.
     
  • Failure to report foreign financial assets on Form 8938 may result in a penalty of $10,000 (and a penalty up to $50,000 for continued failure after IRS notification). Further, underpayments of tax attributable to non-disclosed foreign financial assets will be subject to an additional substantial understatement penalty of 40 percent. Criminal penalties may also apply.
     
  • See frequently asked questions (FAQs) for Form 8938 for information on real estate, foreign assets held in U.S.-based financial accounts, foreign pensions, valuing certain assets, and more.

Alert: The reporting requirement for Form 8938 is separate from the reporting requirement for the FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1). An individual may have to file both forms and separate penalties may apply for failure to file each form. Information on filing a delinquent Form 114 can be found at Delinquent FBAR Submission Procedures. See the Comparison of filing requirements for further information.

Third-party reporting: Foreign financial institutions may provide to the IRS third-party information reporting about financial accounts, including the identity and certain financial information associated with the account, which they maintain offshore on behalf of U.S. individual account holders.

Application to domestic entities: The IRS issued regulations that require a domestic entity to file Form 8938 if the entity is formed or used to hold specified foreign financial assets and the total asset value exceeds the appropriate reporting threshold. This reporting requirement applies to tax years beginning after December 31, 2015.

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