Form 8938: Statement of Specified Foreign Financial Assets

Form 8938 is used by certain U.S. taxpayers to report specified foreign financial assets when applicable reporting requirements are met.

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Introduction

Form 8938 is a federal tax form used by certain U.S. taxpayers to report specified foreign financial assets. The form is generally associated with taxpayers who have certain financial accounts, investments, or other financial interests outside the United States.

The information reported on Form 8938 can include foreign financial accounts, interests in foreign entities, and other specified foreign financial assets. Whether a taxpayer must file Form 8938 depends on factors such as filing status, residence, the type of foreign assets, and the applicable reporting thresholds.

What Is Form 8938?

Form 8938, Statement of Specified Foreign Financial Assets, is used by certain U.S. taxpayers to report specified foreign financial assets to the federal government. It is generally filed as part of the taxpayer’s federal income tax return when required.

Form 8938 may include information such as:

Foreign financial accounts
Foreign bank accounts
Foreign securities accounts
Foreign stocks and investments
Interests in foreign entities
Certain foreign trusts
Certain foreign retirement or financial arrangements
Other specified foreign financial assets
Maximum account values
Income associated with foreign assets
Other applicable asset information

The reporting requirements depend on the type of asset and the taxpayer’s individual circumstances.

Who Uses Form 8938?

Form 8938 may be required for certain U.S. individuals and other taxpayers who hold specified foreign financial assets and meet applicable reporting requirements. Different rules may apply depending on the taxpayer’s filing status and whether the taxpayer lives in or outside the United States.

Form 8938 may be relevant to:

U.S. citizens
U.S. resident aliens
Certain individuals living outside the United States
Certain domestic entities when applicable
Taxpayers with foreign financial accounts
Taxpayers with interests in certain foreign entities
Taxpayers with other specified foreign financial assets

Not every taxpayer with a foreign financial asset must file Form 8938. The requirement generally depends on the type and value of the assets and the taxpayer’s circumstances.

What Information Is Needed?

The information needed to complete Form 8938 generally includes information about the taxpayer, foreign financial assets, account numbers, asset values, income, and related financial information. The exact information required depends on the type of foreign assets being reported.

You may need:

Taxpayer identification information
Foreign financial account information
Account numbers or other identifying information
Names of foreign financial institutions
Foreign addresses
Foreign investment information
Ownership information
Maximum values of applicable assets
Income received from foreign assets
Information about foreign entities
Information about foreign trusts or arrangements
Supporting financial and tax records

Keep records supporting the information reported on Form 8938.

How to Fill Out/Complete Form 8938

Form 8938 contains several parts used to identify the taxpayer, report specified foreign financial assets, provide account information, and report related income or other applicable information. The sections that apply depend on the taxpayer’s foreign assets and circumstances.

Complete the applicable sections using financial statements, account records, investment records, foreign entity documents, and other supporting information. Not every section will apply to every taxpayer.

Part I

Part I generally provides basic information about the taxpayer and identifies the type of foreign financial assets being reported.

Enter the requested taxpayer information and indicate the applicable categories of foreign financial assets. Review the information carefully to make sure it agrees with your tax and financial records.

Part II

Part II generally reports information about foreign deposit and custodial accounts. This can include foreign bank accounts, securities accounts, and other qualifying financial accounts.

Provide the applicable account information, including identifying information about the financial institution and account. Review account statements and other records to determine the information required.

Part III

Part III generally provides information about other specified foreign financial assets that are not reported as foreign deposit or custodial accounts.

This may include certain interests in foreign entities, financial instruments, contracts, or other qualifying assets. Provide the requested information based on your ownership and investment records.

Part IV

Part IV generally provides information about assets that may also be reported on other specified forms. This section helps identify whether certain foreign assets have already been reported elsewhere on the taxpayer’s federal tax return.

Review the applicable federal forms and schedules used with the tax return and provide the requested information when applicable.

Part V

Part V generally provides information about foreign financial accounts and other specified foreign financial assets, including information related to maximum values and income.

Use financial statements and other supporting records to determine the applicable values and income amounts. Make sure the information is consistent with the taxpayer’s other tax reporting.

Part VI

Part VI generally provides additional information about other specified foreign financial assets. The information requested may depend on the type of foreign asset and how it is held or owned.

Complete the applicable information using investment records, ownership documents, account statements, and other supporting records.

Part VII

Part VII generally provides information about certain foreign financial assets and related income or other applicable amounts. The section may require information about assets, values, income, or tax reporting.

Review the taxpayer’s records and provide the applicable information. Make sure the reported amounts are consistent with the taxpayer’s federal tax return.

Part VIII

Part VIII generally provides additional information about foreign financial assets and related reporting. The applicable questions depend on the taxpayer’s specific foreign assets and circumstances.

Answer the applicable questions using reliable financial and tax records. Retain documentation supporting the information reported.

Additional Information

Additional information may be required when a taxpayer has multiple foreign accounts, investments, entities, or other specified foreign financial assets. Supporting statements may also be useful when additional explanation is needed.

Review the completed Form 8938 to make sure all applicable assets have been identified and the required information has been provided.

Final Review

Review Form 8938 after completing all applicable sections. Check the taxpayer information, foreign financial account information, foreign financial institution information, foreign asset information, ownership information, maximum asset values, income information, applicable tax forms, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. Taxpayers should retain Form 8938, foreign account statements, investment records, ownership records, foreign entity documents, financial statements, tax returns, and other supporting tax documents with their tax records.

Common Mistakes

Common Form 8938 mistakes can result from overlooking foreign assets, using incorrect account values, failing to identify applicable foreign accounts, or misunderstanding which assets are subject to reporting. Reviewing financial records and foreign account statements can help reduce reporting errors.

Some common issues include:

Failing to determine whether Form 8938 applies
Failing to identify a specified foreign financial asset
Reporting incorrect account information
Reporting incorrect maximum values
Using incorrect foreign currency information
Failing to report applicable foreign income
Reporting an asset more than once
Failing to provide required identifying information
Leaving applicable sections incomplete
Using information that does not agree with the tax return
Failing to maintain supporting financial records

Review Form 8938 carefully before filing and make sure the information agrees with your financial records and other applicable tax filings.

Related IRS Forms

Form 8938 may be associated with other federal tax forms and foreign financial reporting requirements depending on the taxpayer’s assets and circumstances. Some foreign assets may be subject to more than one type of reporting requirement.

Commonly related forms may include:

Form 1040, U.S. Individual Income Tax Return
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Foreign Branches
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships
FinCEN Form 114, Report of Foreign Bank and Financial Accounts
Form 1116, Foreign Tax Credit

The forms required will depend on the taxpayer’s foreign assets, income, ownership interests, and individual circumstances.

Where to File or Submit

Form 8938 is generally filed with the taxpayer’s applicable federal income tax return when required. It is generally attached to the federal tax return rather than being filed as a separate individual tax return.

The applicable filing method can depend on the taxpayer and the type of federal return being filed. Review the filing requirements applicable to the reporting period before submitting Form 8938.

Current IRS Form & Instructions

Use the Form 8938 and instructions that apply to the tax year being filed. Federal tax forms and instructions may be revised over time, so taxpayers should use the appropriate version for the applicable reporting period.

The general information on this page is intended to remain useful across multiple tax years. Specific reporting thresholds, definitions, filing requirements, asset classifications, and other details may change and should be reviewed for the applicable tax year.

Important Information / Disclaimer

This Form 8938 guide is provided for general informational purposes only and is not tax, legal, or accounting advice. Foreign financial asset reporting can be complex, and the filing requirements may depend on the taxpayer’s filing status, residence, assets, ownership interests, income, and other circumstances.

Taxpayers should review the requirements applicable to the tax year being reported and consider consulting a qualified tax professional when dealing with foreign financial assets or other complex international tax matters. This page is intended as a general educational guide and should not be used as a substitute for reviewing the applicable tax forms, instructions, and tax rules.