FATCA compliance

FATCA COMPLIANCE AND FORM 8938

Reporting your foreign financial assets correctly — and coordinating it with your FBAR.

The Foreign Account Tax Compliance Act (FATCA) requires many U.S. taxpayers to report foreign financial assets on Form 8938 with their tax return. It also requires foreign banks to report U.S. account holders to the IRS — so the IRS often already knows about foreign accounts. At Victoria Bogdanovich CPA, we prepare Form 8938 alongside your FBAR and your return so all three match.

Who needs to file Form 8938?

U.S. citizens and residents whose specified foreign financial assets are above certain thresholds. The thresholds depend on your filing status and where you live. For example, a single U.S. resident generally files when the total is more than $50,000 at year-end or $75,000 at any time during the year; the thresholds are higher for married couples and for people living abroad.

What counts as a foreign financial asset

• Foreign bank, brokerage, and investment accounts
• Foreign stocks and securities held outside an account
• Interests in foreign companies, partnerships, and many foreign trusts
• Foreign pensions and some foreign insurance policies

FBAR vs. Form 8938

They overlap but are not the same. The FBAR (FinCEN Form 114) is filed separately with FinCEN once your foreign accounts together exceed $10,000. Form 8938 is filed with your tax return, has higher thresholds, and covers some assets the FBAR doesn’t. Many people need both.

Why it matters

The penalty for not filing Form 8938 starts at $10,000, and can grow if the IRS asks and the form still isn’t filed. Unreported foreign income can also carry additional penalties, and the time limit for the IRS to review your return can be extended.

How it works

1. Check your fit — about 1 minute. Answer a few questions and see your starting fee.
2. Create your client portal account and complete our Client Application.
3. Meet with us — free Tax Discovery Zoom meeting. Upload your last two years of returns at least 24 hours before the meeting so we can discuss an estimated fee range on the call.
4. Receive your engagement package with your estimated fee and scope of work. Work begins once you sign.

Starting price

Personal return with foreign accounts or foreign income: starting at $3,500.

Foreign companies, trusts, PFICs, and late filings are quoted after review. Your engagement package sets out your estimated fee and what it covers. Work outside that scope is billed separately.

See your starting fee

Frequently asked questions

I already file the FBAR. Do I also need Form 8938?
If your assets are above the 8938 thresholds, yes. We check both every year.

Does my foreign pension count?
Often yes. Foreign pensions are a common Form 8938 item, and some also have income-reporting rules.

I didn’t know about Form 8938. What should I do?
There are procedures that may reduce penalties. Start with a paid Initial Consultation.

See also Foreign Assets & International Tax Reporting.

Ready to see where you fit? Take the 1-minute fit check or see our pricing and how it works.