IRS Form 8938 – IRS Forms, Instructions, Pubs 2026 – If you’re a U.S. taxpayer with investments or accounts overseas, understanding IRS Form 8938—Statement of Specified Foreign Financial Assets—is crucial for compliance. This form, introduced under the Foreign Account Tax Compliance Act (FATCA), helps the IRS track foreign assets to prevent tax evasion. Whether you’re an expat, green card holder, or domestic resident with international holdings, failing to file can lead to hefty penalties. In this SEO-optimized guide, we’ll cover everything you need to know about Form 8938 for tax year 2025 (filed in 2026), including who must file, reporting thresholds, what assets to include, and how to avoid common pitfalls. For the official blank form, download the PDF here: https://www.irs.gov/pub/irs-pdf/f8938.pdf.
What Is IRS Form 8938 and Its Purpose?
IRS Form 8938 is an informational tax form used by certain U.S. taxpayers to report their interests in specified foreign financial assets if the total value exceeds specific thresholds. It’s part of FATCA, enacted in 2010 to increase transparency on foreign income and assets. Unlike the FBAR (FinCEN Form 114), which focuses on foreign bank accounts, Form 8938 covers a broader range of assets, including stocks, bonds, and interests in foreign entities. The form must be attached to your annual tax return, such as Form 1040 or 1040-NR, and is required even if the assets don’t generate taxable income.
The primary purpose is to disclose foreign financial holdings that could impact U.S. tax liabilities. As of 2026, there have been no major updates to the form or its thresholds from previous years, ensuring consistency for filers.
Who Must File IRS Form 8938?
Not every U.S. taxpayer with foreign assets needs to file Form 8938—it depends on your status and the value of your holdings. You qualify as a “specified individual” if you’re:
- A U.S. citizen.
- A resident alien (under the green card or substantial presence test).
- A nonresident alien electing to file jointly with a U.S. spouse.
- A bona fide resident of American Samoa or Puerto Rico.
Specified domestic entities, such as closely held corporations, partnerships, or trusts with significant passive income and ownership by specified individuals, may also need to file. If you’re a dual resident or only a partial-year resident, special rules apply.
Expats and green card holders living abroad often face higher thresholds, making it essential to determine your “tax home” status. If no income tax return is required (e.g., income below filing thresholds), you don’t need to file Form 8938 either.
Reporting Thresholds for Form 8938 in 2026
The thresholds for filing Form 8938 remain unchanged for tax year 2025 (filed in 2026). They vary based on your filing status, whether you live in the U.S., and if the assets’ value exceeds the limit on the last day of the tax year or at any point during the year.
| Filing Status | Living in the U.S. (Last Day / Any Time) | Living Abroad (Last Day / Any Time) |
|---|---|---|
| Unmarried or Married Filing Separately | $50,000 / $75,000 | $200,000 / $300,000 |
| Married Filing Jointly | $100,000 / $150,000 | $400,000 / $600,000 |
| Specified Domestic Entities | $50,000 / $75,000 | N/A |
These values include all specified foreign assets you have an interest in, even if jointly owned or held through disregarded entities. For expats, you must meet the bona fide residence or physical presence test (at least 330 days abroad in a 12-month period) to qualify for higher thresholds.
What Are Specified Foreign Financial Assets?
Specified foreign financial assets include:
- Financial accounts (e.g., bank deposits, custodial accounts) maintained by foreign financial institutions.
- Stocks or securities issued by non-U.S. persons.
- Interests in foreign entities, such as partnerships or trusts.
- Financial instruments or contracts with non-U.S. issuers or counterparties (e.g., foreign pensions, deferred compensation plans).
Assets must be held for investment, not used in a trade or business. Exceptions include:
- Accounts maintained by U.S. payers or branches.
- Assets reported on other forms like 3520, 5471, or 8865 (though their value counts toward thresholds).
- Foreign social security equivalents.
- Assets with no positive value (report as zero).
For valuation, use fair market value in U.S. dollars, converted using year-end exchange rates from the U.S. Treasury. Report the maximum value during the year.
How to File IRS Form 8938?
File Form 8938 with your tax return by the due date, including extensions—typically April 15, 2026, for tax year 2025. It’s available through Free File Fillable Forms and other e-filing options.
The form has six parts:
- Part I & II: Summarize foreign deposit/custodial accounts and other assets.
- Part III: Report tax items like income, gains, and deductions from assets.
- Part IV: List excepted assets reported elsewhere.
- Part V & VI: Provide detailed info on each account or asset, including values, institutions, and currencies.
For joint ownership, spouses filing jointly report the full value once; those filing separately each report the full value. Use continuation sheets if needed.
Penalties for Not Filing Form 8938
Non-compliance can be costly:
- $10,000 base penalty for failure to file, plus $10,000 every 30 days after IRS notice (up to $50,000).
- 40% accuracy-related penalty on underpayments from undisclosed assets.
- Potential fraud penalties (75%) or criminal charges.
- Extended statute of limitations on assessments.
Reasonable cause may waive penalties, but it’s evaluated case-by-case.
Form 8938 vs. FBAR: Key Differences
While both involve foreign assets, Form 8938 is broader and tied to your tax return, with thresholds based on residence. FBAR focuses solely on financial accounts exceeding $10,000 aggregate and is filed separately with FinCEN by April 15 (automatic extension to October 15). You may need to file both if thresholds are met.
Recent Updates and Tips for 2026 Compliance
As of 2026, Form 8938 requirements remain stable, with no threshold changes or major revisions noted. Always check IRS.gov for the latest instructions, as the form is on continuous use. Consult a tax professional if you’re unsure about your obligations, especially for complex assets like foreign trusts or pensions.
By staying informed and filing accurately, you can avoid penalties and ensure full compliance with U.S. tax laws on foreign assets. For more details, visit the IRS website or download the instructions PDF: https://www.irs.gov/pub/irs-pdf/i8938.pdf.