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Form 8938 Instructions

Instructions for Form 8938 , Statement of Specified Foreign Financial Assets

Rev. November 2021

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8938  
Statement of Specified Foreign Financial Assets  
(Rev. November 2021)  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
must file Form 8938 if the total value  
of those assets exceeds $50,000 on  
the last day of the tax year or $75,000  
at any time during the tax year.  
An annual return includes the  
following returns.  
Form 1040.  
Future Developments  
Form 1040-NR.  
Form 1040-SR.  
Form 1041.  
For the latest information about  
developments related to Form 8938  
and its instructions, such as  
legislation enacted after they were  
published, go to IRS.gov/Form8938.  
For more information on domestic  
corporations, partnerships, and trusts  
that are specified domestic entities  
and must file Form 8938, and the  
types of specified foreign financial  
assets that must be reported, see  
Form 1041-N.  
Form 1065.  
Form 1120.  
A reference to an “annual return” or  
What’s New  
Continuous-use form and instruc-  
tions. Form 8938 and these  
instructions have been converted from  
an annual revision to continuous use.  
Both the form and instructions will be  
updated as needed. For the most  
recent versions, go to IRS.gov/  
“income tax return” in these  
instructions includes a reference to  
any return listed here, whether it is an  
income tax return or an information  
return.  
Do not send a Form 8938 to  
General Instructions  
the IRS unless it is attached  
!
CAUTION  
to an annual return or an  
Purpose of Form  
amended return.  
Use Form 8938 to report your  
Reminders  
specified foreign financial assets if the  
total value of all the specified foreign  
financial assets in which you have an  
interest is more than the appropriate  
reporting threshold. See Types of  
Who Must File  
Reporting obligations under sec-  
tion 6038D not affected. Rev. Proc.  
2020-17, available at IRS.gov/IRB/  
exempts foreign trust information  
reporting requirements on Forms  
3520 and 3520-A, for certain U.S.  
individuals’ transactions with, and  
ownership of, certain tax-favored  
foreign trusts that are established and  
operated exclusively or almost  
exclusively to provide pension or  
retirement benefits, or to provide  
medical disability or educational  
benefits. This does not affect any  
reporting obligations under section  
6038D.  
Unless an exception applies, you  
must file Form 8938 if you are a  
specified person (see Specified  
Person, later) that has an interest in  
specified foreign financial assets and  
the value of those assets is more than  
the applicable reporting threshold.  
Filing Form 8938 does not  
relieve you of the  
!
CAUTION  
requirement to file FinCEN  
Form 114, Report of Foreign Bank  
and Financial Accounts (FBAR), if you  
are otherwise required to file the  
FBAR. See FinCEN Form 114 and its  
instructions for FBAR filing  
requirements. Go to IRS.gov/  
for a chart comparing Form 8938 and  
FBAR filing requirements.  
If you are required to file Form  
8938, you must report the specified  
foreign financial assets in which you  
have an interest even if none of the  
assets affects your tax liability for the  
year. See Specified Individual,  
Exception if no income tax  
For more information about section  
6038D information reporting, see  
return required. If you do  
TIP  
not have to file an income tax  
When and How To File  
return for the tax year, you do not  
have to file Form 8938, even if the  
value of your specified foreign  
financial assets is more than the  
appropriate reporting threshold.  
Attach Form 8938 to your annual  
return and file by the due date  
(including extensions) for that return.  
Specified domestic entity report-  
ing. Certain domestic corporations,  
partnerships, and trusts that are  
considered formed or availed of for  
the purpose of holding, directly or  
indirectly, specified foreign financial  
assets (specified domestic entities)  
You must specify the  
applicable calendar year or  
!
Specified Person  
A specified person is either a  
domestic entity, defined later.  
CAUTION  
tax year to which your Form  
8938 relates in the appropriate  
space(s) at the top of the form.  
Dec 10, 2021  
Cat. No. 55389W  
         
your tax year reflected on the  
constructive ownership in a domestic  
corporation or partnership, except that  
section 267(c)(4) is applied as if the  
family of an individual includes the  
spouses of the specified individual’s  
family members.  
Specified Individual  
You are a specified individual if you  
are one of the following.  
schedule to Form 1040 or 1040-SR  
required by Regulations section  
1.6012-1(b)(2)(ii)(a), provided you  
comply with the filing requirements of  
Regulations section 1.6012-1(b)(2)(ii)  
(a), including the requirement to timely  
file Form 1040 or 1040-SR and attach  
a properly completed Form 8833.  
A U.S. citizen.  
A resident alien of the United States  
for any part of the tax year (but see  
Reporting Period, later).  
Passive income. Passive income  
means the part of gross income that  
consists of:  
A nonresident alien who makes an  
election to be treated as a resident  
alien for purposes of filing a joint  
income tax return.  
Dividends, including substitute  
Specified Domestic Entity  
You are a specified domestic entity if  
you are one of the following.  
dividends;  
A nonresident alien who is a bona  
Interest;  
fide resident of American Samoa or  
Puerto Rico. See Pub. 570, Tax Guide  
for Individuals With Income From U.S.  
Possessions, for a definition of bona  
fide resident.  
Income equivalent to interest,  
A closely held domestic corporation  
including substitute interest;  
that has at least 50% of its gross  
income from passive income.  
Rents and royalties, other than  
rents and royalties derived in the  
active conduct of a trade or business  
conducted, at least in part, by  
employees of the corporation or  
partnership;  
A closely held domestic corporation  
if at least 50% of its assets produce or  
are held for the production of passive  
income (see Passive income and  
Resident aliens. You are a resident  
alien if you are treated as a resident  
alien for U.S. tax purposes under the  
green card test or the substantial  
presence test. For more information,  
see Pub. 519, U.S. Tax Guide for  
Aliens. If you qualify as a resident  
alien under either rule, you are a  
specified individual.  
Annuities;  
The excess of gains over losses  
A closely held domestic partnership  
from the sale or exchange of property  
described in Regulations section  
1.6038D-6(b)(3)(i)(F) and that gives  
rise to the types of passive income  
listed above;  
that has at least 50% of its gross  
income from passive income.  
A closely held domestic partnership  
if at least 50% of its assets produce or  
are held for the production of passive  
income (see Passive income and  
Special rule for dual resident tax-  
payers. If you are a dual resident  
taxpayer (within the meaning of  
Regulations section 301.7701(b)-7(a)  
(1)), who determines his or her  
income tax liability for all or a part of  
the tax year as if he or she were a  
nonresident alien as provided by  
Regulations section 301.7701(b)-7,  
file Form 8938 as follows.  
The excess of gains over losses  
from transactions (including futures,  
forwards, and similar transactions) in  
any commodity, but not including:  
A domestic trust described in  
1. Any commodity hedging  
transaction described in section  
954(c)(5)(A), or  
2. Active business gains or losses  
from the sale of commodities, but only  
if substantially all the corporation’s or  
partnership’s commodities are  
property described in paragraph (1),  
(2), or (8) of section 1221(a);  
section 7701(a)(30)(E) that has one or  
more specified persons (a specified  
individual or a specified domestic  
entity) as a current beneficiary.  
Closely held domestic corporation.  
A domestic corporation is closely held  
if, on the last day of the corporation’s  
tax year, a specified individual  
directly, indirectly, or constructively  
owns at least 80% of the total  
combined voting power of all classes  
of stock of the corporation entitled to  
vote or at least 80% of the total value  
of the stock of the corporation.  
Specified individual filing as a  
nonresident alien at the end of his  
or her tax year. You are not  
required to report specified foreign  
financial assets on Form 8938 for the  
part of your tax year covered by Form  
1040-NR, provided you comply with  
the filing requirements of Regulations  
section 301.7701(b)-7(b) and (c),  
including the requirement to timely file  
Form 1040-NR, as applicable, and  
attach Form 8833, Treaty-Based  
Return Position Disclosure Under  
Section 6114 or 7701(b).  
The excess of foreign currency  
gains over foreign currency losses (as  
defined in section 988(b)) attributable  
to any section 988 transaction; and  
Net income from notional principal  
contracts.  
Closely held domestic partnership.  
A domestic partnership is closely held  
if, on the last day of the partnership’s  
tax year, a specified individual  
directly, indirectly, or constructively  
holds at least 80% of the capital or  
profits interest in the partnership.  
Exception from passive income  
treatment for dealers. In the case of  
a domestic corporation or partnership  
regularly acting as a dealer in property  
described in Regulations section  
1.6038D-6(b)(3)(i)(F), forward  
contracts, options contracts, or similar  
financial instruments (including  
notional principal contracts and all  
instruments referenced to  
Specified individual filing as a  
resident alien at the end of his or  
her tax year. You are not required to  
report specified foreign financial  
Constructive ownership. Sections  
267(c) and (e)(3) apply for purposes  
of determining a specified individual’s  
assets on Form 8938 for the part of  
Instructions for Form 8938 (Rev. 11-2021)  
-2-  
               
commodities), passive income does  
not include the following.  
2. Partnership interests  
DC’s weighted passive asset percentage for  
tax year 2021 is 40%, that is, DC’s total  
passive assets divided by its total assets  
($800 / $2,000 = 40%). Because fewer than  
50% of DC’s assets produce or are held for  
the production of passive income and less  
than 50% of DC’s gross income for its tax  
year is passive income, DC does not meet  
the passive asset or passive income  
threshold and would not be a specified  
domestic entity.  
representing at least 80% of the  
profits interests or capital interests of  
the partnership, other than  
1. Any item of income or gain  
(other than any dividends or interest)  
from any transaction (including  
hedging transactions and transactions  
involving physical settlement) entered  
into in the ordinary course of such  
dealer’s trade or business as such a  
dealer.  
partnership interests in the common  
parent, is owned by one or more of  
the other connected corporations,  
connected partnerships, or the  
common parent.  
Percentage of passive assets held  
by a corporation or partnership.  
For purposes of determining whether  
at least 50% of your assets produce  
or are held for the production of  
passive income, the percentage of  
passive assets held by the  
2. In the case of a corporation or  
partnership that is a dealer in  
Domestic trusts. A trust described  
in section 7701(a)(30)(E) is  
securities (within the meaning of  
section 475(c)(2)), any income from  
any transaction entered into in the  
ordinary course of the corporation’s or  
partnership’s trade or business as a  
dealer in securities.  
considered a specified domestic  
entity if and only if the trust has one or  
more specified persons (a specified  
individual or a specified domestic  
entity) as a current beneficiary for the  
tax year.  
corporation or partnership for a tax  
year is the weighted average  
percentage of passive assets  
Passive income or assets of rela-  
ted corporations and partnerships.  
For purposes of determining whether  
a domestic corporation or partnership  
meets the passive income or asset  
test, domestic corporations and  
domestic partnerships that are closely  
held by the same specified individual  
and that are connected through stock  
or partnership ownership with a  
common parent corporation or  
partnership are treated as owning the  
combined assets and receiving the  
combined income of all members of  
that group. For this purpose, any  
contract, equity, or debt existing  
between members of the group, as  
well as any items of gross income  
arising from that contract, equity, or  
debt, is eliminated.  
Current beneficiary. With respect  
to a tax year, a current beneficiary is  
any person who at any time during the  
tax year is entitled to, or at the  
discretion of any person may receive,  
a distribution from the principal or  
income of the trust (determined  
without regard to any power of  
appointment to the extent that such  
power remains unexercised at the end  
of the tax year).  
(weighted by total assets and  
measured quarterly). The value of  
assets of the corporation or  
partnership is the fair market value or  
the book value. The book value of  
assets is the amount reflected on the  
corporation’s or partnership’s balance  
sheet and may be determined under  
either a U.S. or an international  
financial accounting standard. See  
Example 1 below, which illustrates the  
application of this weighted average  
asset rule.  
Special rule for general powers of  
appointment. A current beneficiary  
also includes any holder of a general  
power of appointment, whether or not  
exercised, that was exercisable at any  
time during the tax year. A holder of a  
general power of appointment that is  
exercisable only on the death of the  
holder is not a current beneficiary.  
Example 1. Application of the  
weighted average asset rule. The  
following example illustrates the  
application of the weighted average  
asset rule.  
DC is a domestic corporation, the total value  
of the stock of which is owned by L, a  
specified individual. DC is a calendar year  
taxpayer. Less than 50% of DC’s gross  
income for its tax year beginning January 1,  
2021, is passive income. DC has the  
following assets in 2021, measured quarterly:  
Connected stock or partnership  
ownership. A domestic corporation  
or partnership is considered  
connected through stock or  
partnership interest ownership with a  
common parent corporation or  
partnership in the following  
circumstances.  
Excepted Specified Domestic  
Entities  
Entities described in section  
1473(3). An entity described in  
section 1473(3) and the regulations  
thereunder, with the exception of a  
trust that is exempt from tax under  
section 664(c), is not a specified  
domestic entity.  
Passive Total Assets  
Assets  
1. Stock representing at least 80%  
of the total combined voting power of  
all classes of stock of the corporation  
entitled to vote or of the value of such  
corporation, other than stock of the  
common parent, is owned by one or  
more of the other connected  
Q1  
Q2  
Q3  
Q4  
$150  
$150  
$300  
$200  
$200  
$300  
Certain domestic trust. A trust  
described in section 7701(a)(30)(E) is  
not considered a specified domestic  
entity, provided that all of the following  
apply.  
$500  
$1,000  
Tax Year  
Totals  
$800  
$2,000  
corporations, connected partnerships,  
or the common parent.  
1. The trustee is:  
Instructions for Form 8938 (Rev. 11-2021)  
-3-  
   
a. A bank that is examined by the  
Office of the Comptroller of the  
Currency, the Board of Governors of  
the Federal Reserve System, the  
Federal Deposit Insurance  
Married taxpayers filing a joint  
income tax return. If you are  
married and you and your spouse file  
a joint income tax return, you satisfy  
the reporting threshold only if the total  
value of your specified foreign  
financial assets is more than  
year or more than $300,000 at any  
time during the tax year.  
Presence abroad. You satisfy the  
presence abroad test if you are one of  
the following.  
Corporation, or the National Credit  
Union Administration;  
A U.S. citizen who has been a bona  
fide resident of a foreign country or  
countries for an uninterrupted period  
that includes an entire tax year.  
$100,000 on the last day of the tax  
year or more than $150,000 at any  
time during the tax year.  
b. A financial institution that is  
registered with and regulated or  
examined by the Securities and  
Exchange Commission; or  
c. A domestic corporation  
described in section 1473(3)(A) or  
(B), and the regulations issued with  
respect to those provisions.  
2. The trustee has supervisory  
authority over or fiduciary obligations  
with regard to the specified foreign  
financial assets held by the trust.  
A U.S. citizen or resident who is  
present in a foreign country or  
Married taxpayers filing  
separate income tax returns. If you countries at least 330 full days during  
are married and file a separate  
income tax return from your spouse,  
you satisfy the reporting threshold  
only if the total value of your specified  
foreign financial assets is more than  
$50,000 on the last day of the tax year  
or more than $75,000 at any time  
during the tax year.  
any period of 12 consecutive months  
that ends in the tax year being  
reported.  
Reporting Thresholds Applying to  
Specified Domestic Entities  
If you are a specified domestic entity,  
you satisfy the reporting threshold  
only if the total value of your specified  
foreign financial assets is more than  
$50,000 on the last day of the tax year  
or more than $75,000 at any time  
during the tax year.  
3. The trustee files annual returns  
and information returns by the due  
date (including any applicable  
Taxpayers living outside the Uni-  
ted States. If your tax home is in a  
foreign country, you meet one of the  
presence abroad tests described  
next, and no exception applies, file  
Form 8938 with your income tax  
return if you satisfy the reporting  
threshold discussed next that applies  
to you.  
extensions) on behalf of the trust.  
Domestic trusts owned by one or  
more specified persons. A trust  
described in section 7701(a)(30)(E) to  
the extent the trust or any part of the  
trust is treated as owned by one or  
more specified persons under  
sections 671 through 678 and the  
regulations.  
Determining the Total Value of  
Your Specified Foreign  
Financial Assets  
You must figure the total value of the  
specified foreign financial assets in  
which you have an interest to  
Unmarried taxpayers. If you are  
not married, you satisfy the reporting  
threshold only if the total value of your  
specified foreign financial assets is  
more than $200,000 on the last day of  
the tax year or more than $300,000 at  
any time during the tax year.  
Types of Reporting Thresholds  
Reporting Thresholds Applying to  
Specified Individuals  
If you are a specified individual, your  
applicable reporting threshold  
depends upon whether you are  
married, file a joint federal income tax  
return, and live inside (or outside) the  
United States.  
determine if you satisfy the reporting  
threshold that applies to you. To  
determine if you have an interest in a  
specified foreign financial asset, see  
Married taxpayers filing a joint  
income tax return. If you are  
married and you and your spouse file  
a joint income tax return, you satisfy  
the reporting threshold only if the total  
value of your specified foreign  
financial assets is more than  
$400,000 on the last day of the tax  
year or more than $600,000 at any  
time during the tax year.  
Financial Assets, later.  
Valuing Specified Foreign  
Financial Assets  
The value of a specified foreign  
financial asset for purposes of  
determining the total value of  
Taxpayers living in the United  
States. If you do not live outside the  
United States, you satisfy the  
reporting threshold discussed next  
that applies to you, and no exception  
applies, file Form 8938 with your  
income tax return.  
specified foreign financial assets in  
which you have an interest during the  
tax year or on the last day of the tax  
year is the asset's fair market value.  
For purposes of figuring the total value  
of specified foreign financial assets,  
the value of a specified foreign  
financial asset denominated in a  
foreign currency must first be  
Married taxpayers filing  
separate income tax returns. If you  
are married and file a separate  
income tax return from your spouse,  
you satisfy the reporting threshold  
only if the total value of your specified  
foreign financial assets is more than  
$200,000 on the last day of the tax  
Unmarried taxpayers. If you are  
not married, you satisfy the reporting  
threshold only if the total value of your  
specified foreign financial assets is  
more than $50,000 on the last day of  
the tax year or more than $75,000 at  
any time during the tax year.  
determined in the foreign currency  
and then converted to U.S. dollars.  
Instructions for Form 8938 (Rev. 11-2021)  
-4-  
             
later, for rules on determining and  
applying the appropriate foreign  
currency exchange rate.  
depends on whether the other owner  
is your spouse and, if so, whether  
your spouse is a specified individual  
and whether you file a joint or  
separate return.  
Bona Fide Resident of a U.S.  
Possession  
Do not include the value of specified  
foreign financial assets you are not  
required to report because you are a  
bona fide resident of a U.S.  
possession. See Bona Fide Resident  
of a U.S. Possession under Assets  
Not Required To Be Reported, later.  
Value of an Interest in a Foreign  
Trust During the Tax Year  
Joint ownership with spouse filing  
joint income tax return. If you and  
your spouse file a joint income tax  
return and, therefore, would file one  
combined Form 8938 for the tax year,  
include the value of the asset jointly  
owned with your spouse only once to  
determine the total value of all of the  
specified foreign financial assets you  
and your spouse own.  
If you do not know or have reason to  
know based on readily accessible  
information the fair market value of  
your interest in a foreign trust during  
the tax year, the value to be included  
in determining the total value of your  
specified foreign financial assets  
during the tax year is the maximum  
value of your interest in the foreign  
Trusts, later, for rules on determining  
the maximum value of an interest in a  
foreign trust.  
Owners of Certain Domestic Trusts  
Do not include the value of specified  
foreign financial assets you are not  
required to report because you are an  
owner of a domestic widely held fixed  
investment trust or a domestic  
liquidating trust created under  
chapter 7 or chapter 11 of the  
Bankruptcy Code. See Domestic  
Joint ownership with spouse filing  
separate income tax return. If you  
and your spouse are specified  
individuals and you each file a  
separate annual return, include  
one-half of the value of the asset  
jointly owned with your spouse to  
determine the total value of all of your  
specified foreign financial assets.  
Value of an Interest in a Foreign  
Estate, Foreign Pension Plan, and  
Foreign Deferred Compensation  
Plan  
Related Domestic Corporations  
and Partnerships  
Joint ownership with a spouse  
who is not a specified individual or  
someone other than a spouse.  
Each joint owner includes the entire  
value of the jointly owned asset to  
determine the total value of all of that  
joint owner's specified foreign  
financial assets.  
If you do not know or have reason to  
know based on readily accessible  
information the fair market value of  
your interest in a foreign estate,  
foreign pension plan, or foreign  
deferred compensation plan during  
the tax year, the value to be included  
in determining the total value of your  
specified foreign financial assets  
during the tax year is the fair market  
value, determined as of the last day of  
the tax year, of the currency and other  
property distributed during the tax  
year to you. If you received no  
To determine if you satisfy the  
applicable reporting threshold, a  
specified domestic entity that is a  
corporation or partnership and that  
has an interest in any specified  
foreign financial asset is treated as  
owning all specified foreign financial  
assets held by all related corporations  
or partnerships that are closely held  
by the same specified individual  
(excluding specified foreign financial  
assets that are excluded from  
Special Rules  
Assets Reported on Another Form  
Specified individual. If you are a  
specified individual, include the value  
of all specified foreign financial  
assets, even if they are reported on  
another form listed in Part IV to  
determine if you satisfy the reporting  
threshold that applies to you. See Part  
Financial Assets, later.  
reporting under Part IV of Form 8938  
or because you are the owner of a  
domestic widely held fixed investment  
trust or a domestic liquidating trust  
created under chapter 7 or chapter 11  
of the Bankruptcy Code).  
distributions during the tax year and  
do not know or have reason to know  
based on readily accessible  
information the fair market value of  
your interest, use a value of zero for  
the interest.  
Examples 2 through 11 may help  
you decide if you have to file Form  
8938.  
Specified domestic entity. If you  
are a specified domestic entity,  
exclude the value of any specified  
foreign financial asset reported on  
another form listed in Part IV to  
determine if you satisfy the applicable  
reporting threshold.  
Asset With No Positive Value  
Example 2. I am not married and  
do not live abroad. The total value  
of my specified foreign financial  
assets does not exceed $49,000  
during the tax year. You do not  
have to file Form 8938. You do not  
satisfy the reporting threshold of more  
than $50,000 on the last day of the tax  
year or more than $75,000 at any time  
during the tax year.  
If the maximum value of a specified  
foreign financial asset is less than  
zero, use a value of zero for the asset.  
Joint Interest Valuation  
If you jointly own an asset with  
someone else, the value that you use  
to determine the total value of all of  
your specified foreign financial assets  
Instructions for Form 8938 (Rev. 11-2021)  
-5-  
     
Example 3. I am not married and financial asset with a value of  
you jointly own, $45,000, plus the  
do not live abroad. I sold my only $90,000. My spouse has a separate entire value of the asset that your  
specified foreign financial asset on interest in a specified foreign  
spouse separately owns, $10,000.  
You have an interest in specified  
foreign financial assets in the amount  
of $46,000 on the last day of the tax  
year. This is one-half of the value of  
the asset that you jointly own,  
$45,000, plus the entire value of the  
asset that you separately own,  
$1,000. Your spouse satisfies the  
reporting threshold of more than  
$50,000 on the last day of the tax  
year. You do not satisfy the reporting  
threshold of more than $50,000 on the  
last day of the tax year or more than  
$75,000 at any time during the tax  
year.  
October 15, when its value was  
$125,000. You have to file Form  
8938. You satisfy the reporting  
financial asset with a value of  
$10,000. I have a separate interest  
in a specified foreign financial  
threshold even though you do not hold asset with a value of $1,000. You  
any specified foreign financial assets  
on the last day of the tax year  
because you did own specified  
foreign financial assets of more than  
$75,000 at any time during the tax  
year.  
Example 4. I am not married and  
do not live abroad. An unrelated  
U.S. resident and I jointly own a  
specified foreign financial asset  
valued at $60,000. You each have  
to file Form 8938. You each satisfy the  
reporting threshold of more than  
$50,000 on the last day of the tax  
year.  
Example 5. I am not married and  
do not live abroad. I own an entity  
disregarded for tax purposes,  
which owns one specified foreign  
financial asset valued at $30,000.  
In addition, I own a specified  
foreign financial asset valued at  
$25,000. You have to file Form 8938.  
You own both the specified foreign  
financial asset owned by the  
disregarded entity and the specified  
foreign financial asset you own  
directly, for a total value of $55,000.  
You satisfy the reporting threshold of  
more than $50,000 on the last day of  
the tax year.  
Example 6. My spouse and I do  
not live abroad. We file a joint  
income tax return and jointly own  
a single specified foreign financial  
asset valued at $60,000. You and  
your spouse do not have to file Form  
8938. You do not satisfy the reporting  
threshold of more than $100,000 on  
the last day of the tax year or more  
than $150,000 at any time during the  
tax year.  
Example 7. My spouse and I do  
not live abroad. We file a joint  
income tax return, and jointly and  
individually own specified foreign  
financial assets. On the last day of  
the tax year, my spouse and I  
jointly own a specified foreign  
and your spouse have to file a  
combined Form 8938. You and your  
spouse have an interest in specified  
foreign financial assets in the amount  
of $101,000 on the last day of the tax  
year. This is the entire value of the  
specified foreign financial asset that  
you jointly own, $90,000, plus the  
value of the asset that your spouse  
separately owns, $10,000, plus the  
value of the asset that you separately  
own, $1,000. You and your spouse  
satisfy the reporting threshold of more  
than $100,000 on the last day of the  
tax year.  
Example 10. My spouse and I  
are U.S. citizens but live abroad for  
the entire tax year and file a joint  
income tax return. The total value  
of our combined specified foreign  
financial assets on any day of the  
Example 8. My spouse and I do  
not live abroad. We file separate  
income tax returns and jointly own tax year is $150,000. You and your  
a specified foreign financial asset  
valued at $60,000 for the entire  
year. Neither you nor your spouse  
has to file Form 8938. You each use  
one-half of the value of the asset,  
$30,000, to determine the total value  
of specified foreign financial assets  
that you each own. Neither of you  
satisfies the reporting threshold of  
more than $50,000 on the last day of  
the tax year or more than $75,000 at  
any time during the tax year.  
spouse do not have to file Form 8938.  
You do not satisfy the reporting  
threshold of more than $400,000 on  
the last day of the tax year or more  
than $600,000 at any time during the  
tax year for married individuals who  
live abroad and file a joint income tax  
return.  
Example 11. My spouse and I  
live abroad and file separate  
income tax returns. My spouse is  
not a specified individual. On the  
last day of the tax year, my spouse  
and I jointly own a specified  
Example 9. My spouse and I file  
separate income tax returns,  
jointly and individually own  
foreign financial asset with a value  
of $150,000. My spouse has a  
separate interest in a specified  
specified foreign financial assets,  
and do not live abroad. On the last  
day of the tax year, my spouse and foreign financial asset with a value  
I jointly own a specified foreign  
financial asset with a value of  
of $10,000. I have a separate  
interest in a specified foreign  
$90,000. My spouse has a separate financial asset with a value of  
interest in a specified foreign  
financial asset with a value of  
$10,000. I have a separate interest  
in a specified foreign financial  
asset with a value of $1,000. You  
$60,000. You have to file Form 8938  
but your spouse, who is not a  
specified individual, does not. You  
have an interest in specified foreign  
financial assets in the amount of  
do not have to file Form 8938 but your $210,000 on the last day of the tax  
spouse does. Your spouse has an  
interest in specified foreign financial  
assets in the amount of $55,000 on  
the last day of the tax year. This is  
one-half of the value of the asset that  
year. This is the entire value of the  
asset that you jointly own, $150,000,  
plus the entire value of the asset that  
you separately own, $60,000. You  
satisfy the reporting threshold for a  
Instructions for Form 8938 (Rev. 11-2021)  
-6-  
married individual living abroad and  
filing a separate return of more than  
$200,000 on the last day of the tax  
year.  
the Northern Mariana Islands, Puerto  
Rico, or the U.S. Virgin Islands).  
Stock is not considered used or  
held for use in the conduct of a trade  
or business.  
Foreign financial institution. In  
most cases, a foreign financial  
institution is any financial institution  
that is not a U.S. entity and satisfies  
one or more of the following.  
If you are required to file  
Form 8938, in addition to  
!
Specified Foreign  
Financial Assets  
Types of Specified Foreign  
Financial Assets  
CAUTION  
reporting retirement and  
pension accounts and nonretirement  
savings accounts described in  
It accepts deposits in the ordinary  
course of a banking or similar  
business.  
Regulations section 1.1471-5(b)(2)(i),  
you must report retirement and  
pension accounts, nonretirement  
Specified foreign financial assets  
include the following assets.  
1. Financial accounts maintained  
by a foreign financial institution.  
2. The following foreign financial  
assets if they are held for investment  
and not held in an account maintained  
by a financial institution.  
a. Stock or securities issued by  
someone that is not a U.S. person  
(including stock or securities issued  
by a person organized under the laws  
of a U.S. possession).  
b. Any interest in a foreign entity.  
c. Any financial instrument or  
contract that has an issuer or  
counterparty that is not a U.S. person  
(including a financial contract issued  
by, or with a counterparty that is, a  
person organized under the laws of a  
U.S. possession).  
It holds financial assets for the  
account of others as a substantial part savings accounts, and accounts  
of its business.  
satisfying conditions similar to those  
described in Regulations section  
1.1471-5(b)(2)(i) that are otherwise  
excluded from the definition of a  
financial account by an applicable  
It is engaged (or holds itself out as  
being engaged) primarily in the  
business of investing, reinvesting, or  
trading in securities, partnership  
interests, commodities, or any interest Model 1 IGA or Model 2 IGA. Thus,  
(including a futures or forward  
such accounts are subject to uniform  
reporting rules and must be reported  
contract or option) in such securities,  
partnership interests, or commodities. without regard to whether the account  
is maintained in a jurisdiction with an  
IGA.  
Other Specified Foreign Financial  
Assets  
Examples of other specified foreign  
financial assets include the following,  
if they are held for investment and not  
held in a financial account.  
Interests in Specified Foreign  
Financial Assets  
You have an interest in a specified  
foreign financial asset if any income,  
gains, losses, deductions, credits,  
gross proceeds, or distributions from  
holding or disposing of the asset are  
or would be required to be reported,  
included, or otherwise reflected on  
your income tax return.  
Stock issued by a foreign  
corporation.  
A capital or profits interest in a  
foreign partnership.  
For foreign financial assets  
excepted from reporting, see Assets  
A note, bond, debenture, or other  
form of indebtedness issued by a  
foreign person.  
You have an interest in a specified  
foreign financial asset even if no  
income, gains, losses, deductions,  
credits, gross proceeds, or  
distributions from holding or disposing  
of the asset are included or reflected  
on your income tax return for this tax  
year.  
An interest in a foreign trust or  
Financial Account  
foreign estate.  
An interest rate swap, currency  
A financial account is any depository  
or custodial account (under  
swap, basis swap, interest rate cap,  
interest rate floor, commodity swap,  
equity swap, equity index swap, credit  
default swap, or similar agreement  
with a foreign counterparty.  
Regulations section 1.1471-5(b)(1)(i)  
or (ii)) maintained by a foreign  
financial institution as well as any  
equity or debt interest in a foreign  
financial institution (other than  
An option or other derivative  
Interests in Property Transferred  
in Connection With the  
Performance of Services  
instrument with respect to any of  
these examples or with respect to any  
currency or commodity that is entered  
into with a foreign counterparty or  
issuer.  
interests that are regularly traded on  
an established securities market) or  
any cash value life insurance or  
annuity contract maintained by an  
insurance company or other foreign  
financial institution. A specified foreign  
financial asset includes a financial  
account maintained by a financial  
institution that is organized under the  
laws of a U.S. possession (American  
Samoa, Guam, the Commonwealth of  
You are first considered to have an  
interest in property transferred in  
connection with the performance of  
services on the first date that the  
property is substantially vested (within  
the meaning of Regulations section  
1.83-3(b)) or, if you have made a valid  
section 83(b) election with respect to  
the property, on the date of transfer of  
the property.  
Assets held for investment. You  
hold an asset, including a partnership  
interest, for investment if you do not  
use it in, or hold it for use in, the  
conduct of any trade or business.  
Instructions for Form 8938 (Rev. 11-2021)  
-7-  
               
investment or bankruptcy trusts, see  
starting date, February 1, and ends on  
December 31.  
Interests in Assets Held by  
Disregarded Entities  
If you are the owner of a disregarded  
entity, you have an interest in any  
specified foreign financial assets  
owned by the disregarded entity.  
Reporting Maximum Value  
Interests in Foreign Estates and  
Foreign Trusts  
You must report the maximum value  
during the tax year of each specified  
foreign financial asset reported on  
Form 8938. In most cases, the value  
of a specified foreign financial asset is  
its fair market value. An appraisal by a  
third party is not necessary to  
An interest in a foreign trust or a  
foreign estate is not a specified  
foreign financial asset unless you  
know or have reason to know based  
on readily accessible information of  
the interest. If you receive a  
distribution from the foreign trust or  
foreign estate, you are considered to  
know of the interest.  
Interests in Jointly Owned Assets  
A joint owner of an asset has an  
interest in the entire asset. For special  
rules for interests in assets jointly  
owned by spouses, see Joint Interest  
estimate the maximum fair market  
value during the year. See Valuing  
later.  
Interests in Assets Held in  
Financial Accounts  
If you have an interest in a financial  
account that holds specified foreign  
financial assets, you do not have to  
report the assets held in the account.  
Assets With No Positive Value  
Interests in Foreign Pension Plans  
and Foreign Deferred  
Compensation Plans  
If the maximum value of a specified  
foreign financial asset is less than  
zero, use a value of zero as the  
maximum value of the asset.  
Report in Part VI your interest in the  
foreign pension plan or foreign  
deferred compensation plan. Do not  
separately report the assets held by  
Foreign Currency Conversion  
If your specified foreign financial asset  
is denominated in a foreign currency  
during the tax year, the maximum  
value of the asset must be determined  
in the foreign currency and then  
converted to U.S. dollars.  
Interests in Assets Generating  
Certain Unearned Income of  
Children  
If you file Form 8814, Parents'  
Election To Report Child's Interest  
and Dividends, with your income tax  
return to elect to include in your gross  
income certain unearned income of  
your child (the “kiddie tax” election),  
you have an interest in any specified  
foreign financial asset held by the  
child.  
Reporting Period  
In most cases, you must use the  
U.S. Treasury Bureau of the Fiscal  
Service foreign currency exchange  
rate for purchasing U.S. dollars. You  
can find this rate on  
U.S. Treasury Bureau of the Fiscal  
Service exchange rate is available,  
you must use another publicly  
available foreign currency exchange  
rate for purchasing U.S. dollars and  
disclose the rate on Form 8938.  
Unless an exception applies, the  
reporting period for Form 8938 is your  
tax year.  
Exception for Partial Tax Years  
of Specified Individuals  
If you are a specified individual for  
less than the entire tax year, the  
reporting period is the part of the year  
that you are a specified individual.  
Example 12. John is a calendar  
year taxpayer. The Form 8938  
reporting period begins on January 1  
and ends on December 31.  
Example 13. Agnes was a single  
calendar year taxpayer who died on  
March 6. The Form 8938 reporting  
period begins on January 1 and ends  
on March 6.  
Example 14. George, a calendar  
year taxpayer, is not a U.S. citizen or  
married. George arrived in the United  
States on February 1 and satisfied the  
substantial presence test for the tax  
year. The Form 8938 reporting period  
begins on George's U.S. residency  
Interests in Assets Held by Entities  
That Are Not Disregarded Entities  
In most cases, you do not own an  
interest in any specified foreign  
financial asset held by a partnership,  
corporation, trust, or estate solely as a  
result of your status as a partner,  
shareholder, or beneficiary.  
Currency Determination Date  
Use the currency exchange rate on  
the last day of the tax year to figure  
the maximum value of a specified  
foreign financial asset or the value of  
a specified foreign financial asset for  
the purpose of determining the total  
value of your specified foreign  
financial assets to see whether you  
have met the reporting threshold. Use  
this rate even if you sold or otherwise  
disposed of the specified foreign  
Interests in Assets Held by  
Grantor Trust  
If you are considered the owner under  
the grantor trust rules (sections 671  
through 679) of any part of a trust, you  
have an interest in any specified  
foreign financial asset held by that  
part of the trust you are considered to  
own. For exceptions from reporting for  
owners of certain domestic  
Instructions for Form 8938 (Rev. 11-2021)  
-8-  
           
financial asset before the last day of  
the tax year.  
asset. If you file Form 8814, you must  
report any specified foreign financial  
asset your child owns and include the  
maximum value of the entire asset.  
Valuing Interests in Foreign  
Trusts  
If you are a beneficiary of a foreign  
trust, the maximum value of your  
interest in the trust is the sum of the  
following amounts.  
Exception for Financial Account  
Statement Currency Conversion  
Rate  
You may rely on the foreign currency  
conversion rate reflected in a financial  
account statement issued at least  
annually by the financial institution  
maintaining the account.  
Other Joint Ownership  
If you are a joint owner of a specified  
foreign financial asset and you cannot  
use one of the special rules for  
married individuals who file a joint tax  
return, you must report the specified  
foreign financial asset and include the  
maximum value of the entire asset.  
The value of all of the cash or other  
property distributed during the tax  
year from the trust to you as a  
beneficiary.  
The value using the valuation tables  
under section 7520 of your right as a  
beneficiary to receive mandatory  
distributions as of the last day of the  
tax year.  
Reporting the Value of Jointly  
Owned Assets  
If you own an asset jointly with one or  
more persons, you must report the  
asset's maximum value as follows.  
Valuing Financial Accounts  
You may rely on periodic account  
statements for the tax year to report a  
financial account's maximum value  
unless you know or have reason to  
know based on readily accessible  
information that the statements do not  
reflect a reasonable estimate of the  
maximum account value during the  
tax year.  
Valuing Interests in Foreign  
Estates, Foreign Pension Plans,  
and Foreign Deferred  
Compensation Plans  
If you have an interest in a foreign  
estate, foreign pension plan, or  
foreign deferred compensation plan,  
the maximum value of your interest is  
the fair market value of your beneficial  
interest in the assets of the estate,  
pension plan, or deferred  
Married Specified Individuals  
Filing a Joint Income Tax Return  
If you are married and you and your  
spouse file a joint income tax return,  
report any specified foreign financial  
asset that you jointly own only once  
and include the maximum value of the  
entire asset (and not just the  
maximum value of your interest in the  
asset). Also, you must report any  
specified foreign financial asset that  
you or your spouse separately owns  
and include the maximum value of the  
entire asset. If you and your spouse  
file a joint income tax return that  
includes Form 8814, you must report  
any specified foreign financial asset  
your child owns only once and include  
the maximum value of the entire  
asset.  
Valuing Other Specified  
Foreign Financial Assets  
In most cases, you may use the value  
of a specified foreign financial asset  
that is not a financial account and that  
is held for investment and not held in  
an account maintained by a financial  
institution as of the last day of the tax  
year, unless you know or have reason  
to know based on readily accessible  
information that the value does not  
reflect a reasonable estimate of the  
maximum value of the asset during  
the tax year.  
Example 15. I have publicly  
traded foreign stock not held in a  
financial account that has a fair  
market value as of the last day of  
the tax year of $100,000, although,  
based on daily price information  
that is readily available, the  
52-week high trading price for the  
stock results in a maximum value  
of the stock during the tax year of  
$150,000. If you are required to file  
Form 8938, the maximum value of the  
foreign stock to be reported is  
$150,000, based on readily available  
information of the stock’s maximum  
value during the tax year.  
compensation plan as of the last day  
of the tax year. If you do not know or  
have reason to know based on readily  
accessible information the fair market  
value as of the last day of the tax year,  
the maximum value is the fair market  
value, determined as of the last day of  
the tax year, of the cash and other  
property distributed during the tax  
year to you as a beneficiary or  
participant. If you received no  
distributions during the tax year and  
do not know or have reason to know  
based on readily accessible  
Married Specified Individuals  
Filing Separate Income Tax  
Returns  
If you are married and you and your  
spouse are specified individuals who  
file separate income tax returns, both  
you and your spouse report any  
specified foreign financial asset that  
you jointly own on your separate  
Forms 8938, and both you and your  
spouse must include the maximum  
value of the entire asset on your  
separate Forms 8938. You must also  
report any specified foreign financial  
asset that you own individually on  
your separate Form 8938 and include  
the maximum value of the entire  
information the fair market value of  
your interest as of the last day of the  
tax year, use a value of zero as the  
maximum value of the asset.  
Assets Not Required To  
Be Reported  
You are not required to report the  
following assets.  
Certain Financial Accounts  
The following financial accounts and  
the assets held in such accounts are  
not specified foreign financial assets  
and do not have to be reported on  
Form 8938.  
Instructions for Form 8938 (Rev. 11-2021)  
-9-  
                     
1. A financial account that is  
Form 3520, Annual Return To  
same tax year. See Form 3520-A and  
its instructions.  
maintained by a U.S. payer, such as a Report Transactions With Foreign  
domestic financial institution. In  
Trusts and Receipt of Certain Foreign  
You report the filing of Form 3520  
general, a U.S. payer also includes a  
domestic branch of a foreign bank or  
foreign insurance company and a  
Gifts (in the case of a specified person and 3520-A on Form 8938.  
who is a beneficiary of a foreign trust,  
Instead, you must identify on Form  
see Part III of Form 3520 and its  
8938 how many of these forms you  
foreign branch or foreign subsidiary of instructions).  
a U.S. financial institution. Examples  
of financial accounts maintained by  
U.S. financial institutions include:  
Form 5471, Information Return of  
U.S. Persons With Respect to Certain  
Foreign Corporations.  
If you are a specified  
U.S. mutual funds accounts,  
IRAs (traditional or Roth),  
Form 8621, Information Return by a  
individual, you must include  
the value of the assets  
!
Shareholder of a Passive Foreign  
CAUTION  
Section 401(k) retirement accounts, Investment Company or Qualified  
Qualified U.S. retirement plans, and Electing Fund.  
reported on Forms 3520, 3520-A,  
5471, 8621, and 8865 in determining  
whether you satisfy the reporting  
threshold that applies to you. See  
Brokerage accounts maintained by  
Form 8865, Return of U.S. Persons  
With Respect to Certain Foreign  
Partnerships.  
U.S. financial institutions.  
2. A financial account that is  
maintained by a dealer or trader in  
securities or commodities if all of the  
holdings in the account are subject to  
the mark-to-market accounting rules  
for dealers in securities or an election  
under section 475(e) or (f) is made for  
all of the holdings in the account.  
Instead, you must identify on Form  
8938 the form(s) on which you report  
the specified foreign financial asset  
and how many of these forms you file.  
Domestic Investment Trusts  
If you are considered the owner under  
the grantor trust rules (sections 671  
through 679) of any part of a domestic  
widely held fixed investment trust  
under Regulations section 1.671-5,  
you do not have to report any  
specified foreign financial asset held  
by the part of the trust you are  
considered to own.  
Joint Form 5471 or Form 8865  
Filers  
Certain Financial Assets  
You do not have to report any asset  
that is not held in a financial account if  
the asset is subject to the  
mark-to-market accounting rules for  
dealers in securities or commodities  
or an election under section 475(e) or  
(f) is made for the asset.  
If you are included as part of a joint  
Form 5471 or Form 8865 filing and  
provide the notification required by  
Regulations section 1.6038-2(i) or  
1.6038-3(c), you are considered to  
have filed that form for purposes of  
the requirement to report specified  
foreign financial assets on Form 8938.  
Domestic Bankruptcy Trusts  
If you are considered the owner under  
the grantor trust rules (sections 671  
through 679) of any part of a domestic  
liquidating trust under Regulations  
section 301.7701-4(d) that is created  
under chapter 7 or chapter 11 of the  
Bankruptcy Code, you do not have to  
report any specified foreign financial  
asset held by the part of the trust you  
are considered to own.  
Foreign Equivalent to U.S.  
Social Security  
Payments or the rights to receive the  
foreign social security equivalent to  
U.S. social security, social insurance  
benefits, or another similar program of  
a foreign government are not  
specified foreign financial assets and  
are not reportable. The foreign social  
security equivalent to U.S. social  
security does not include an interest in  
a foreign pension plan, which, as  
described above, is subject to section  
6038D reporting.  
Foreign Grantor Trusts  
If you are considered the owner under  
the grantor trust rules (sections 671  
through 679) of any part of a foreign  
trust, you do not have to report any of  
the specified foreign financial assets  
held by the part of the trust you are  
considered to own if you satisfy the  
following conditions.  
Bona Fide Resident of a U.S.  
Possession  
If you are a bona fide resident of a  
U.S. possession (American Samoa,  
Guam, the Commonwealth of the  
Northern Mariana Islands, Puerto  
Rico, or the U.S. Virgin Islands), do  
not include the value of the following  
assets to determine if you satisfy the  
reporting threshold that applies to  
you. If you are required to file Form  
8938, you do not have to report the  
following specified foreign financial  
assets on Form 8938.  
You report the trust on a Form 3520  
Exceptions To Reporting  
Duplicative Reporting  
You do not have to report any asset  
on Form 8938 if you report it on one or  
more of the following forms that you  
timely file with the IRS for the same  
tax year.  
that you timely file with the IRS for the  
same tax year. See Part III of Form  
3520 and its instructions.  
You ensure that the trust timely files  
Form 3520-A, Annual Information  
Return of Foreign Trust With a U.S.  
Owner, (or you timely file a substitute  
Form 3520-A) with the IRS for the  
Instructions for Form 8938 (Rev. 11-2021)  
-10-  
             
A financial account maintained by a  
specified foreign financial asset, you  
may have to pay a penalty equal to  
40% of that underpayment.  
Married Taxpayers Filing a Joint  
Income Tax Return  
financial institution organized under  
the laws of the U.S. possession of  
which you are a bona fide resident.  
If you are married and you and your  
spouse file a joint income tax return,  
the failure-to-file penalties apply as if  
you and your spouse were a single  
person. Your and your spouse’s  
liability for all penalties is joint and  
several.  
Examples of underpayments due to  
transactions involving an undisclosed  
specified foreign financial asset  
include the following.  
A financial account maintained by a  
branch of a financial institution not  
organized under the laws of the U.S.  
possession of which you are a bona  
fide resident, if the branch is subject  
to the same tax and information  
You do not report ownership of  
shares in a foreign corporation on  
Form 8938 and you received taxable  
distributions from the company that  
you did not report on your income tax  
return.  
reporting requirements that apply to a  
financial institution organized under  
the laws of the U.S. possession of  
which you are a bona fide resident.  
Presumption of Maximum Value  
If the IRS determines that you have an  
interest in one or more specified  
foreign financial assets and asks you  
for information about the value of any  
asset, but you do not provide enough  
information for the IRS to determine  
the value of the asset, you are  
You do not report ownership of  
Stock or securities issued by an  
shares in a foreign company on Form  
8938 and you sold the shares in the  
company for a gain and did not report  
the gain on your income tax return.  
entity organized under the laws of the  
U.S. possession of which you are a  
bona fide resident.  
An interest in an entity organized  
You do not report a foreign pension  
presumed to own specified foreign  
financial assets with a value of more  
than the reporting threshold that  
applies to you. See Determining the  
Financial Assets, earlier. In such  
case, you are subject to the  
under the laws of the U.S. possession  
of which you are a bona fide resident.  
on Form 8938 and you received a  
taxable distribution from the pension  
plan that you did not report on your  
income tax return.  
A financial instrument or contract  
held for investment, provided each  
issuer or counterparty that is not a  
U.S. person is either an entity  
Fraud  
organized under the laws of the U.S.  
possession of which you are a bona  
fide resident or a bona fide resident of  
the U.S. possession of which you are  
a bona fide resident.  
If you underpay your tax due to fraud,  
you must pay a penalty of 75% of the  
underpayment due to fraud.  
failure-to-file penalties if you do not  
file Form 8938.  
Criminal Penalties  
Reasonable Cause Exception  
In addition to the penalties already  
discussed, if you fail to file Form 8938,  
fail to report an asset, or have an  
underpayment of tax, you may be  
subject to criminal penalties.  
No penalty will be imposed if you fail  
to file Form 8938 or to disclose one or  
more specified foreign financial assets  
on Form 8938 and the failure is due to  
reasonable cause and not to willful  
neglect. You must affirmatively show  
the facts that support a reasonable  
cause claim.  
Penalties  
You may be subject to penalties if you  
fail to timely file a correct Form 8938  
or if you have an understatement of  
tax relating to an undisclosed  
Statute of Limitations  
specified foreign financial asset.  
If you fail to file Form 8938 or fail to  
report a specified foreign financial  
asset that you are required to report,  
the statute of limitations for the tax  
year may remain open for all or a part  
of your income tax return until 3 years  
after the date on which you file Form  
8938.  
Failure-To-File Penalty  
If you are required to file Form 8938  
but do not file a complete and correct  
Form 8938 by the due date (including  
extensions), you may be subject to a  
penalty of $10,000.  
The determination of whether a  
failure to disclose a specified foreign  
financial asset on Form 8938 was due  
to reasonable cause and not due to  
willful neglect will be determined on a  
case-by-case basis, taking into  
account all pertinent facts and  
circumstances.  
Continuing Failure To File  
If you do not file a correct and  
Extended Statute of Limitations for  
Failure To Include Income  
complete Form 8938 within 90 days  
after the IRS mails you a notice of the  
failure to file, you may be subject to an  
additional penalty of $10,000 for each  
30-day period (or part of a period)  
during which you continue to fail to file  
Form 8938 after the 90-day period  
has expired. The maximum additional  
penalty for a continuing failure to file  
Form 8938 is $50,000.  
Effect of foreign jurisdiction laws.  
The fact that a foreign jurisdiction  
would impose a civil or criminal  
penalty on you if you disclose the  
required information is not reasonable  
cause.  
If you do not include in your gross  
income an amount relating to one or  
more specified foreign financial  
assets, and the amount you omit is  
more than $5,000, any tax you owe for  
the tax year can be assessed at any  
time within 6 years after you filed your  
return.  
Accuracy-Related Penalty  
If you underpay your tax as a result of  
a transaction involving an undisclosed  
Instructions for Form 8938 (Rev. 11-2021)  
-11-  
         
For this purpose, specified foreign  
financial assets include any specified  
foreign financial assets in which you  
have an interest without regard to the  
number (ITIN). In the case of a  
specified domestic entity (see  
enter the entity’s employer  
Line 6  
Report the total maximum value of  
these deposit accounts.  
Line 7  
reporting threshold that applies to you identification number (EIN).  
and regardless of any exception from  
Report the number of custodial  
accounts reported in all Parts V.  
Line 3  
reporting a specified foreign financial  
Indicate the type of filer by checking  
the applicable box on line 3. If you are  
a specified individual (see Specified  
Individual, earlier), check box 3a. In  
the case of a specified domestic entity  
earlier), check the applicable box for  
partnership (3b), corporation (3c), or  
trust (3d).  
asset on Form 8938.  
Line 8  
Report the total maximum value of  
these custodial accounts.  
Specific Instructions  
Before you begin. If you are a  
specified individual and report all of  
your specified foreign financial assets  
on a timely filed Form 3520, 3520-A,  
5471, 8621, or 8865, you do not have  
to report them on Form 8938. Instead,  
enter your name(s) and taxpayer  
identification number (TIN) at the top  
of the form and complete Part IV only.  
If you are a specified individual or a  
specified domestic entity and report  
only a part of your specified foreign  
financial assets on one or more of  
these forms, report the remaining  
assets on Form 8938 and complete  
Part IV.  
Line 9  
Indicate whether any foreign deposit  
or custodial accounts were closed  
during the tax year.  
Line 4  
Part II. Other Foreign  
Assets Summary  
If you checked box 3a (specified  
individual), do not complete this line 4.  
If you checked box 3b (partnership) or  
3c (corporation), enter the name and  
TIN of the specified individual (see  
Specified Individual, earlier) who  
closely holds the partnership or  
corporation. If you checked box 3d  
(trust), enter the name and TIN of the  
specified person (see Specified  
Person, earlier) who is a current  
beneficiary of the trust.  
Use Part II to summarize information  
regarding financial accounts (other  
than foreign deposit and custodial  
accounts) and other specified foreign  
financial assets reported in all Parts  
VI.  
Line 10  
Report the number of accounts and  
assets reported in all Parts VI.  
Additional statements. If you have  
more than one account or asset to  
report in Part V or VI, or more than  
one issuer or counterparty to report in  
Part VI, make additional copies of  
Line 11  
Report the total maximum value of  
these accounts and assets.  
Note. If you are a paper filer and you  
have more than one specified  
page 2 of this form and attach them to individual or specified person, attach  
Line 12  
your form. Check the box at the top of  
page 1 of the form to indicate that you  
are attaching additional statements,  
and enter the number of additional  
statements in the space provided.  
a statement listing the name and TIN  
of each such specified individual or  
specified person.  
Indicate whether any account was  
opened or closed or any asset was  
acquired or disposed of during the tax  
year.  
If you are a specified  
individual (see Specified  
Individual, earlier) for less  
TIP  
Part III. Summary of Tax  
Items Attributable to  
Specified Foreign  
Period Covered  
than the entire tax year, you only have  
to report the information for the part of  
the year that you are a specified  
individual.  
For filing calendar year and fiscal year  
returns, fill in the tax year of the  
specified individual or specified  
domestic entity for whom you are  
furnishing information in the space at  
the top of the form.  
Financial Assets  
Enter the following items for your total  
assets reported in Part V or Part VI  
and the schedule, form, or return on  
which you reported the items.  
Part I. Foreign Deposit and  
Custodial Accounts  
Summary  
Identifying Information  
Lines 1 and 2  
Interest.  
Use Part I to summarize information  
regarding foreign deposit and  
custodial accounts reported in all  
Parts V.  
Dividends.  
Royalties.  
Enter your name(s) and TIN as shown  
on the annual return you are filing with  
Form 8938. If you are a specified  
individual (see Specified Individual,  
earlier), enter the first TIN shown on  
your income tax return. A TIN is a  
social security number (SSN) or  
individual taxpayer identification  
Other income.  
Gains or (losses).  
Deductions.  
Credits.  
Line 5  
Report the number of deposit  
accounts reported in all Parts V.  
Instructions for Form 8938 (Rev. 11-2021)  
-12-  
 
Other Joint Owners  
Lines 20 Through 28  
Enter the following information for  
each foreign deposit or custodial  
account.  
Part IV. Excepted  
Specified Foreign  
Financial Assets  
Report the maximum value of the  
entire jointly held account on your  
Form 8938 filed with your income tax  
return, regardless of the value of your  
separate interest in the account.  
If you reported a specified foreign  
financial asset on certain other forms  
listed below for the same tax year, you  
may not have to report it on Form  
8938. However, you must identify the  
form where you reported the asset by  
indicating how many forms you filed.  
Line 20  
Check the box to indicate if this is a  
depository or a custodial account.  
Lines 24 and 25  
If you used a foreign currency  
exchange rate to convert the value of  
the account into U.S. dollars, check  
the “Yes” box on line 24 and go to  
line 25. Otherwise, check the “No” box  
and go to line 26.  
Line 21  
Enter the account number of the  
account or other specific identifying  
information for the account if there is  
no account number.  
For more information, see  
Duplicative Reporting, earlier. If you  
reported a specified foreign financial  
asset on one or more of the following  
forms, enter the number of forms filed.  
Line 22  
Line 25  
If you answered “Yes” on line 24,  
enter the following information.  
Check one or more boxes to indicate  
if any of the following applies.  
Form 3520.  
Form 3520-A.  
Form 5471.  
Form 8621.  
Form 8865.  
The account was opened during the  
1. The foreign currency in which  
the account is maintained.  
2. The foreign currency exchange  
rate used to convert the value of the  
account into U.S. dollars.  
3. If the U.S. Treasury Bureau of  
the Fiscal Service did not provide an  
exchange rate, the source of the  
foreign currency exchange rate that  
you used.  
tax year.  
The account was closed during the  
tax year.  
The account was jointly owned with  
Foreign Grantor Trusts  
your spouse.  
If you are treated as an owner of any  
part of a foreign grantor trust, you may  
have to file Form 8938 to report  
specified foreign financial assets held  
by the trust. If you are a beneficiary of  
the foreign trust, you may have to file  
Form 8938 to report your interest in  
the trust. You do not have to report on  
Form 8938 any specified foreign  
financial asset held by the trust or  
your interest in the trust if you report  
the trust on a Form 3520, you timely  
file for the tax year, and the trust  
timely files Form 3520-A for the tax  
year.  
You did not report any tax item in  
Part III for this asset.  
Line 23  
Enter the maximum value of the  
account during the tax year.  
You must use the foreign  
currency exchange rate on  
!
Value, earlier, for information  
TIP  
CAUTION  
the last day of the tax year,  
on determining the maximum  
value of the account.  
even if you closed or disposed of the  
account before the last day of the tax  
year.  
Joint Interests in Foreign  
Deposit and Custodial  
Accounts  
Use the following rules to determine  
the maximum value to report.  
Line 26a  
Enter the name of the financial  
institution in which the account is  
maintained.  
Part V. Detailed  
Information for Each  
Foreign Deposit and  
Custodial Account  
Included in the Part I  
Summary  
Line 26b  
Spouses Filing a Joint Return  
If you have been furnished the Global  
Intermediary Identification Number  
(GIIN) associated with the financial  
account listed on line 26a, enter it  
here.  
You and your spouse report the  
maximum value of an account held  
jointly by you and your spouse only  
once on the single Form 8938 filed  
with your joint income tax return.  
Use Part V to report information for  
foreign deposit and custodial  
accounts. If you have more than one  
account, attach an additional  
statement with the required  
If you haven't been provided a GIIN  
by your financial institution, you can  
look it up by using the FATCA Foreign  
Financial Institution (FFI) List Search  
and Download tool. You can access  
Spouses Filing Separate Returns  
You and your spouse each report the  
maximum value of an account held  
jointly by you and your spouse on your  
separate Forms 8938 filed with your  
separate income tax returns.  
information for each additional  
account and check the box at the top  
of page 1 of the form.  
Instructions for Form 8938 (Rev. 11-2021)  
-13-  
 
If your search returns multiple  
instances of the same name for the  
financial institution, use the one that  
most closely matches the information  
that you have. You will not be subject  
to penalties if you enter the wrong  
GIIN or leave this field blank.  
Completing this information may  
reduce the need for the IRS to contact  
you.  
asset held jointly by you and your  
spouse on your separate Forms 8938  
filed with your separate income tax  
returns.  
Line 30  
Enter the identifying number or other  
information identifying the account or  
asset.  
Line 31  
Other Joint Owners  
Enter the following information about  
the account or asset, if required.  
Report the maximum value of the  
entire jointly held account or asset on  
your Form 8938 filed with your income  
tax return, regardless of the value of  
your separate interest in the account  
or asset.  
1. If the account was opened or  
closed, or the asset was acquired or  
disposed of during the year, enter the  
date of opening and/or closure, or  
acquisition and/or disposition, as  
applicable. If the assets were  
acquired or disposed of during  
different dates in the year, enter  
“Various.”  
2. If you own the account or asset  
jointly with your spouse, check the  
box on line 31c.  
3. If you did not report any income,  
gain, loss, deduction, or credit for this  
account or asset on your tax return or  
any schedule or form attached to your  
Lines 27 and 28  
Enter the mailing address of the  
financial institution in which the  
account is maintained.  
Lines 33 and 34  
If you used a foreign currency  
exchange rate to convert the value of  
the account or asset into U.S. dollars,  
check the “Yes” box on line 33 and go  
to line 34. Otherwise, check the “No”  
box and go to line 35.  
Part VI. Detailed  
Information for Each  
"Other Foreign Asset"  
Included in the Part II  
Summary  
Line 34  
If you answered “Yes” on line 33,  
enter the following information.  
1. The foreign currency in which  
the account or asset is denominated.  
2. The foreign currency exchange  
rate used to convert the value of the  
account or asset into U.S. dollars.  
3. If the U.S. Treasury Bureau of  
the Fiscal Service did not provide an  
exchange rate, the source of the  
foreign currency exchange rate that  
you used.  
Use Part VI to report information for  
financial accounts (other than foreign  
deposit and custodial accounts) and  
other specified foreign financial assets income tax return filed for the tax year,  
not held in a financial account. If you  
have more than one asset, attach an  
additional statement with the required  
information for each additional asset  
and check the box at the top of page 1  
of the form.  
check the box on line 31d.  
Line 32  
Check the box for the value range that  
represents the maximum value of the  
account or asset during the tax year. If  
the maximum value is more than  
$200,000, enter the maximum value  
on line 32e.  
Lines 29 Through 36  
Enter the following information for  
each financial account and specified  
foreign financial asset not held in a  
financial account reported in Part II.  
For examples of specified foreign  
financial assets not held in a financial  
Financial Assets, earlier.  
Value, earlier, for information  
You must use the foreign  
currency exchange rate on  
TIP  
!
on determining the maximum  
value of the account or asset.  
CAUTION  
the last day of the tax year,  
even if you closed the account or sold  
or disposed of the asset before the  
last day of the tax year.  
Joint Interest in Other Foreign  
Assets  
Use the following rules to figure the  
maximum value to report.  
Lines 35a Through 35e  
Line 29  
If the account or asset you reported  
on line 29 is stock of a foreign entity or  
an interest in a foreign entity,  
Enter a description of the account or  
asset. If the asset is stock or  
securities, include the class or issue  
of the stock or securities.  
Spouses Filing a Joint Return  
complete lines 35a through 35e.  
You and your spouse report the  
maximum value of an account or  
asset held jointly by you and your  
spouse only once on the single Form  
8938 filed with your joint income tax  
return.  
Example 16. You own 100 shares  
of XYZ Company, an Italian S.A. A  
sufficient description is “100 Class A  
shares of XYZ Company, S.A.”  
Example 17. You own a bond  
issued by AB GmbH, a German  
GmbH. A sufficient description is  
“Bond of AB GmbH, maturing on  
December 31, 2019.”  
Line 35a  
Enter the name of the foreign entity.  
Line 35b  
If you have been furnished the GIIN  
associated with the financial account  
or asset listed on line 29, enter it here.  
Spouses Filing Separate Returns  
You and your spouse each report the  
maximum value of an account or  
If you haven't been provided a GIIN  
by your financial institution, you can  
look it up by using the FATCA Foreign  
Instructions for Form 8938 (Rev. 11-2021)  
-14-  
Financial Institution (FFI) List Search  
and Download tool. You can access  
If your search returns multiple  
instances of the same name for your  
financial institution, use the one that  
most closely matches the information  
that you have. You will not be subject  
to penalties if you enter the wrong  
GIIN or leave this field blank.  
OMB control number. Books or  
records relating to a form or its  
instructions must be retained as long  
as their contents may become  
material in the administration of any  
Internal Revenue law. Generally, tax  
returns and return information are  
confidential, as required by section  
6103.  
Line 36a  
Enter the name of the issuer or  
counterparty and check the  
appropriate box to indicate if you are  
reporting for an issuer or a  
counterparty.  
Line 36b  
Check the appropriate box to indicate  
the type of issuer or counterparty.  
The time needed to complete and  
file this form will vary depending on  
individual circumstances. The  
estimated burden for business  
taxpayers filing this form is approved  
under OMB control number  
1545-0123. The estimated burden for  
all other taxpayers who file this form is  
shown below.  
Line 36c  
Check the box to indicate if the issuer  
or counterparty is a U.S. person or a  
foreign person.  
Completing this information may  
reduce the need for the IRS to contact  
you.  
Lines 36d and 36e  
Enter the mailing address of the issuer  
or counterparty. If the issuer or  
counterparty has a mailing address in  
the United States, you can enter the  
U.S. mailing address.  
Line 35c  
Check the box on line 35c to indicate  
the type of foreign entity.  
Learning about  
the law or the  
Lines 35d and 35e  
Enter the mailing address of the  
foreign entity.  
form . . . . . . . . . .  
Preparing the  
form . . . . . . . . . .  
Copying,  
57 min.  
Paperwork Reduction Act Notice.  
We ask for the information on this  
form to carry out the Internal Revenue  
laws of the United States. Section  
6038D requires specified individuals  
and specified domestic entities to  
report specified foreign financial  
assets in which they have an interest.  
Form 8938 is used to comply with this  
reporting requirement.  
2 hr., 57 min.  
Lines 36a Through 36e  
assembling,  
and sending the  
form to the IRS. .  
If the account or asset you reported  
on line 29 is not stock of a foreign  
entity or an interest in a foreign entity,  
complete lines 36a through 36e.  
48 min.  
Note. If this account or asset has  
more than one issuer or counterparty,  
copy page 2 as many times as  
needed and complete a separate  
line 36 for each issuer or  
counterparty. Check the box at the top  
of page 1 of the form.  
If you have comments concerning  
the accuracy of these time estimates  
or suggestions for making this form  
simpler, we would be happy to hear  
from you. See the instructions for the  
tax return with which this form is filed.  
You are not required to provide the  
information requested on a form that  
is subject to the Paperwork Reduction  
Act unless the form displays a valid  
Instructions for Form 8938 (Rev. 11-2021)  
-15-  
Index  
Foreign Grantor  
Trusts 10  
A
S
V
Additional Statements 12  
Assets Not Required To Be  
Reported 9  
Special Rules 5  
Specified Person 1  
Excepted Specified  
Domestic Entities 3  
Passive Income 2  
Specified Domestic  
Entity 2  
Valuing:  
Valuing Financial  
I
Accounts 9  
Valuing Interests in  
Foreign Estates,  
Foreign Pension  
Plans, and Foreign  
Deferred  
Interests in Specified  
Foreign Financial  
Assets 7  
C
Closely Held Domestic  
Corporation 2  
Specified Individual 2  
P
Closely Held Domestic  
Partnership 2  
Compensation  
Plans 9  
Passive Income 2  
Penalties 11  
Accuracy-Related  
Penalty 11  
Constructive Ownership 2  
T
Valuing Interests in  
Foreign Trusts 9  
Valuing Other Specified  
Foreign Financial  
Assets 9  
Types of Reporting  
Thresholds 4  
Criminal Penalties 11  
Failure-To-File  
Penalty 11  
D
Reporting Thresholds  
Applying to Specified  
Domestic Entities 4  
Reporting Thresholds  
Applying to Specified  
Individuals 4  
Determining the Total Value  
of Your Specified  
Foreign Financial  
Assets 4  
Fraud 11  
W
Asset With No Positive  
Value 5  
When and How To File 1  
Who Must File 1  
R
Types of Specified Foreign  
Financial Assets 7  
Financial Account 7  
Foreign Financial  
Institution 7  
Reporting Maximum  
Value 8  
Foreign Currency  
Conversion 8  
Reporting Period 8  
E
Excepted Specified  
Domestic Entities 3  
Exceptions To  
Reporting 10  
Other Specified Foreign  
Financial Assets 7  
Duplicative Reporting 10  
-16-