What are the Form 8938 filing thresholds for 2026?

For U.S.-based taxpayers, the threshold is $50,000 on the last day of the year or $75,000 at any point during the year (single/MFS), or $100,000/$150,000 for married filing jointly. Taxpayers living abroad have higher thresholds: $200,000/$300,000 for single/MFS filers and $400,000/$600,000 for married filing jointly. These thresholds have not been inflation-adjusted since FATCA's enactment, so more taxpayers are brought in each year as foreign asset values rise.

What happens if I don't file Form 8938?

The IRS can assess a $10,000 penalty for failure to file Form 8938. If the failure continues after the IRS mails a notice of the requirement, an additional $10,000 penalty can be assessed for each 30-day period (or fraction thereof) of continued non-filing, up to a maximum additional penalty of $50,000. The IRS can also extend the statute of limitations on the entire tax return if Form 8938 is not filed or is materially incomplete.

Do I need to report a foreign retirement account on Form 8938?

Foreign pension or retirement accounts are generally reportable as specified foreign financial assets unless a specific treaty or IRS guidance provides an exception. For example, certain Canadian registered retirement savings plans (RRSPs) may be excluded under the U.S.-Canada tax treaty, but the analysis is fact-specific. Most CPA firms recommend disclosing foreign retirement accounts on Form 8938 unless there is clear treaty authority for exclusion, and noting any treaty position taken.

If my foreign account is already reported on Form 5471 or 8865, do I still need to list it on Form 8938?

Yes, but you can use the duplication exception. Assets reported on Forms 3520, 3520-A, 5471, 8621, or 8865 are listed in Part IV of Form 8938 rather than in Parts I or II, with a cross-reference to the form where full details appear. This avoids double-reporting while still satisfying the Form 8938 disclosure obligation. Failing to complete Part IV when this exception applies is a common preparer oversight.

Can I get an extension to file Form 8938?

Form 8938 does not have its own extension mechanism. Because it is attached to your federal income tax return, any valid extension of time to file the underlying return (Form 4868 for individuals) automatically extends the due date for Form 8938 as well. However, an extension to file is not an extension to pay; any tax due is still owed by the original April 15 deadline to avoid interest and penalties.

Are foreign real estate holdings reported on Form 8938?

Foreign real estate held directly — meaning you own the property in your own name — is generally not a specified foreign financial asset and does not need to be reported on Form 8938. However, if you hold foreign real estate through a foreign entity such as a foreign corporation, partnership, or trust, your interest in that entity is a specified foreign financial asset and the value of that interest (which may reflect the real estate) must be included in your threshold calculation and reported on the form.

International

Form 8938: Statement of Specified Foreign Financial Assets

Reports specified foreign financial assets if their total value exceeds certain thresholds, including foreign bank accounts, foreign stocks, and interests in foreign entities.

Download Form 8938 PDF About on IRS.gov Instructions PDF

Overview

IRS Form 8938, Statement of Specified Foreign Financial Assets, is an information return required under Section 6038D of the Internal Revenue Code. It was introduced as part of the Foreign Account Tax Compliance Act (FATCA) and requires certain U.S. taxpayers to disclose their interests in specified foreign financial assets when the aggregate value exceeds prescribed thresholds. The form is filed as an attachment to the taxpayer's annual federal income tax return, meaning it is due on the same date as Form 1040 (or the applicable business return), including any extensions.

The purpose of Form 8938 is to give the IRS visibility into offshore financial holdings that might otherwise go unreported. Specified foreign financial assets include foreign deposit and custodial accounts, as well as non-account assets such as stock or securities issued by a foreign corporation, interests in foreign partnerships, foreign trusts, foreign estates, and foreign-issued insurance contracts or annuities with a cash surrender value. The form requires taxpayers to report the maximum value of each asset during the tax year, not merely the year-end balance, which creates a recordkeeping obligation throughout the year.

It is critical to understand that Form 8938 is separate from and does not replace the FinCEN Report 114 (FBAR). The two reports have overlapping but distinct coverage, different filing thresholds, different filing platforms, and independent penalty regimes. A taxpayer can be required to file both, one, or neither depending on their specific circumstances. Most CPA firms advise clients with any significant foreign financial presence to analyze both requirements simultaneously to avoid inadvertent non-compliance.

Who Files This Form?

Form 8938 must be filed by specified individuals and certain domestic entities that hold specified foreign financial assets above the applicable reporting threshold.

For specified individuals — which includes U.S. citizens, resident aliens, and certain nonresident aliens who elect to be treated as residents or who are bona fide residents of a U.S. territory — the thresholds depend on filing status and residency:

• Single or Married Filing Separately (living in the U.S.): Report if total value exceeds $50,000 on the last day of the tax year OR exceeds $75,000 at any point during the year. • Married Filing Jointly (living in the U.S.): Report if total value exceeds $100,000 on the last day of the tax year OR exceeds $150,000 at any point during the year. • Single or Married Filing Separately (living abroad): Report if total value exceeds $200,000 on the last day of the tax year OR exceeds $300,000 at any point during the year. • Married Filing Jointly (living abroad): Report if total value exceeds $400,000 on the last day of the tax year OR exceeds $600,000 at any point during the year.

Certain domestic entities — specifically closely held domestic corporations, partnerships, and trusts that are formed or availed of to hold specified foreign financial assets — are also subject to Form 8938 filing requirements under Treasury regulations.

Notable exceptions: Foreign financial assets held through a foreign entity (rather than directly) may not need to be reported on Form 8938 in every case, though the interest in the foreign entity itself may be a reportable asset. Assets reported on certain other IRS forms — such as Forms 3520, 5471, 8621, or 8865 — may qualify for a duplication exception, but the taxpayer must still list those assets on Form 8938 and identify the form on which they are reported. Nonresident aliens who have not made an election to be treated as U.S. residents are generally not required to file.

Key Fields

Part I: Foreign Deposit and Custodial Accounts

This section captures foreign bank accounts (deposit accounts) and foreign brokerage or similar accounts (custodial accounts). For each account, you report the name and address of the foreign financial institution, the account number, whether the account was opened or closed during the year, and the maximum value during the tax year. A common error is omitting accounts with low year-end balances that nevertheless crossed a threshold mid-year.

Part II: Other Specified Foreign Financial Assets

This catch-all section covers non-account assets: foreign stocks, foreign bonds, interests in foreign partnerships, foreign trusts, foreign estates, and foreign insurance contracts with cash value. You must identify the asset type, the issuer or counterparty, and the maximum value. Many filers overlook foreign-issued annuities or life insurance policies with cash surrender values, which are explicitly reportable here.

Part III: Summary of Tax Items Attributable to Specified Foreign Financial Assets

This section reconciles income, gains, losses, deductions, and credits from the reported foreign assets back to specific lines on Form 1040 and supporting schedules. It is essentially a cross-reference table confirming that income from the foreign assets has been reported on the underlying return. Mismatches between Part III and the 1040 are a common audit trigger.

Part IV: Excepted Specified Foreign Financial Assets

If an asset is being reported on another IRS information return (Forms 3520, 3520-A, 5471, 8621, 8865), you list it here rather than in Parts I or II to avoid double-reporting. You still must identify the asset and the form number where it appears. Forgetting to complete Part IV when applicable can make it appear the taxpayer has more unreported assets than they actually do.

Maximum Value of Each Asset

For every asset reported, you must state its maximum value in U.S. dollars at any point during the tax year, converted at the applicable Treasury Department exchange rate (or another publicly available rate if no Treasury rate exists). Using the year-end balance instead of the annual maximum is one of the most frequent errors on this form, and it can cause the IRS to question whether the filing threshold was correctly applied.

Foreign Financial Institution Name and Address

Each reportable account requires the complete name and mailing address of the foreign financial institution holding the account. If an institution has changed its name or merged, use the name and address as of the last day of the tax year. Incomplete addresses — for example, omitting the country — can delay processing and draw IRS correspondence.

Account Number or Asset Identifier

For deposit and custodial accounts, provide the account number exactly as it appears on the institution's statements. For non-account assets in Part II, if there is no account number, you provide a description sufficient to identify the asset (e.g., CUSIP, ISIN, or a narrative description). Using truncated or approximate account numbers is a frequent minor error that can still trigger IRS notices.

Part V: Detailed Information for Each Foreign Deposit and Custodial Account Reported in Part I

If the aggregate value of all foreign financial assets exceeds the reporting threshold, the taxpayer must provide detailed information for each account in Part V, including whether the account was jointly held, whether it had a foreign account holder, and any other required disclosures. This section is easy to overlook when preparer software auto-populates Part I without prompting for the Part V detail.

Tax Year and Taxpayer Identification Number

Form 8938 must clearly identify the tax year and include the taxpayer's correct Social Security Number or ITIN (for individuals) or EIN (for domestic entities). A mismatch between the TIN on Form 8938 and the attached Form 1040 can cause the IRS to treat the form as unfiled, triggering the failure-to-file penalty even when the document was physically submitted.

Filing Deadlines

Due Date

April 15

With Extension

October 15

Late Filing Penalty

$10,000 penalty for failure to file; additional $10,000 for each 30 days of non-filing after IRS notice (up to $50,000).

Step-by-Step Instructions

1
Determine whether the taxpayer is a specified individual or specified domestic entity and identify the applicable reporting threshold based on filing status and whether the taxpayer resides inside or outside the United States.
2
Compile a complete inventory of all foreign financial assets held at any point during the tax year, including foreign deposit accounts, custodial accounts, foreign stocks, bonds, partnership interests, trust interests, and foreign insurance or annuity contracts with cash value.
3
Calculate the maximum value of each asset in its local currency during the tax year — not just the year-end balance — and convert each maximum to U.S. dollars using the applicable Treasury Department Financial Management Service exchange rate for the last day of the tax year, or another consistently applied published rate if no Treasury rate exists.
4
Determine whether the aggregate maximum value of all specified foreign financial assets exceeds the applicable threshold. If it does not, Form 8938 is not required for that taxpayer; document this conclusion in the workpapers.
5
Identify any assets that are already being reported on Forms 3520, 3520-A, 5471, 8621, or 8865 and flag them for Part IV treatment rather than reporting them in full detail in Parts I or II.
6
Complete Part I for all foreign deposit and custodial accounts, entering the institution name, address, account number, maximum value, and whether the account was opened or closed during the year. Complete Part V with the corresponding detailed information for each account.
7
Complete Part II for all non-account specified foreign financial assets, providing the asset description, issuer or counterparty information, and maximum value. Cross-check this list against the taxpayer's brokerage statements, K-1s, and any foreign trust or entity documentation.
8
Complete Part III by mapping income, gains, losses, deductions, and credits from the reported foreign assets to the corresponding lines on Form 1040 and attached schedules. Verify that every item in Part III is also reflected correctly on the underlying return.
9
Attach the completed Form 8938 to the taxpayer's Form 1040 (or applicable entity return) before filing. Do not file Form 8938 as a standalone document. If the return is on extension, the Form 8938 extension follows automatically, but the threshold analysis must still be documented.

Common Mistakes to Avoid

Using year-end balances instead of the annual maximum value for each asset.

The form explicitly requires the maximum value at any point during the tax year. Pull monthly or quarterly statements for each account and asset to identify the true peak value before converting to USD.

Confusing Form 8938 with the FBAR (FinCEN 114) and believing that filing one satisfies the obligation for the other.

The two forms have different thresholds, cover slightly different asset classes, and are filed on entirely different platforms. Always analyze both obligations independently; most taxpayers with significant foreign accounts will need to file both.

Omitting non-account foreign financial assets such as foreign-issued life insurance policies with cash surrender value or interests in foreign partnerships.

Review the client's full financial picture — not just bank and brokerage accounts — including any foreign entity ownership, annuities, or insurance products held outside the U.S. The scope of 'specified foreign financial assets' is broader than most clients expect.

Failing to complete Part IV when assets are already reported on Forms 5471, 8865, or other international information returns.

Even if an asset qualifies for the duplication exception, it must still be listed in Part IV with the cross-reference form number. Leaving Part IV blank can make it appear that more assets are unreported than actually are, and it eliminates the penalty protection the exception is designed to provide.

Filing Form 8938 as a standalone document rather than attaching it to the federal income tax return.

Form 8938 has no legal effect unless it is attached to the taxpayer's timely filed (including extensions) federal income tax return. A standalone submission will be treated as unfiled for penalty purposes.

Applying the wrong reporting threshold by not accounting for the taxpayer's residency status or filing status.

Verify at the outset whether the taxpayer qualifies as living 'abroad' under the FATCA rules (generally, a foreign country is the taxpayer's tax home and they satisfy either the bona fide residence test or physical presence test) and confirm the correct threshold tier before concluding no filing is required.

Frequently Asked Questions

Form 8938 is filed with the IRS as part of your federal tax return and covers a broader category of 'specified foreign financial assets,' including non-account assets like foreign stock and partnership interests. The FBAR (FinCEN 114) is filed separately with the Financial Crimes Enforcement Network, covers only foreign financial accounts, and has lower reporting thresholds. Having to file one does not eliminate the obligation to file the other, and the penalties for each are independent.

Related Forms

FinCEN 114 (FBAR)

Report of Foreign Bank and Financial Accounts

Form 5471

Information Return of U.S. Persons With Respect to Certain Foreign Corporations

Form 8865

Return of U.S. Persons With Respect to Certain Foreign Partnerships

Form 1040

U.S. Individual Income Tax Return

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