IRS Form 8938 does not replace or otherwise affect a taxpayer’s obligation to file an FBAR, Report of Foreign Bank and Financial Accounts (also known as TD F 90-22.1).
Individuals must file each form (Form 8938 and FBAR) for which they meet the relevant reporting threshold. Adding to the confusion is that the Form 8938 and the FBAR have totally different requirements.
NOTE: If you are filing an FBAR for the first time when there was a previous obligation, be sure to visit our Voluntary Disclosure Page for answers to frequently asked questions.
Filing comparison |
Form 8938, Statement of Specified Foreign Financial Assets |
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) |
Who Must File? |
Specified individuals, which include U.S citizens, resident aliens, and certain nonresident aliens that have an interest in specified foreign financial assets and meet the reporting thresholdU.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold. |
U.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold |
Does the United States include U.S. territories? |
No. |
Yes, resident aliens of U.S territories and U.S. territory entities are subject to FBAR reporting. |
Reporting Threshold (Total Value of Assets) |
$50,000 on the last day of the tax year or $75,000 at any time during the tax year for unmarried filers. If you are married and you and your spouse file a joint tax return, the amounts are double over $150,000 at any point during the year or $75,000 final account balance. |
$10,000 at any time during the calendar year |
When do you have an interest in an account or asset? |
If any income, gains, losses, deductions, credits, gross proceeds, or distributions from holding or disposing of the account or asset are or would be required to be reported, included, or otherwise reflected on your income tax return. |
Financial interest: you are the owner of record or holder of legal title; the owner of record or holder of legal title is your agent or representative; you have a sufficient interest in the entity that is the owner of record or holder of legal title.Signature authority: you have authority to control the disposition of the assets in the account by direct communication with the financial institution maintaining the account.See instructions for further details. |
Types of Assets and Whether or not they are reportable. |
Form 8938, Statement of Specified Foreign Financial Assets |
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) |
Financial (deposit and custodial) accounts held at foreign financial institutions |
Yes |
Yes |
Financial account held at a foreign branch of a U.S. financial institution |
No |
Yes |
Financial account held at a U.S. branch of a foreign financial institution |
No |
No |
Foreign financial account for which you have signature authority |
No, unless you otherwise have an interest in the account as described above |
Yes, subject to exceptions |
Foreign stock or securities held in a financial account at a foreign financial institution |
The account itself is subject to reporting, but the contents of the account do not have to be separately reported |
The account itself is subject to reporting, but the contents of the account do not have to be separately reported |
Foreign stock or securities not held in a financial account |
Yes |
No |
Foreign partnership interests |
Yes |
No |
Indirect interests in foreign financial assets through an entity |
No |
Yes, if sufficient ownership or beneficial interest (i.e., a greater than 50 percent interest) in the entity. See instructions for further detail. |
Foreign mutual funds |
Yes |
Yes |
Domestic mutual fund investing in foreign stocks and securities |
No |
No |
Foreign accounts and foreign non-account investment assets held by foreign or domestic grantor trust for which you are the grantor |
Yes, as to both foreign accounts and foreign non-account investment assets |
Yes, as to foreign accounts. |
Foreign-issued life insurance or annuity contract with a cash-value |
Yes |
Yes |
Foreign hedge funds and foreign private equity funds |
Yes |
No |
Foreign real estate held directly |
No |
No |
Foreign real estate held through a foreign entity |
No, but the foreign entity itself is a specified foreign financial asset and its maximum value includes the value of the real estate |
|
Foreign currency held directly |
No |
No |
Precious Metals held directly |
No |
No |
Personal property, held directly, such as art, antiques, jewelry, cars and other collectibles |
No |
No |
‘Social Security’- type program benefits provided by a foreign government |
No |
No |
Contact us if:
- You are unsure if you have a filing requirement
- You need assistance filing one of these forms
- You realize that you should have been filing in the past, but haven't
We can help. Call us at 888-727-8796 or email info@irsmedic.com.
