As an American abroad, you will need to complete Form 8938 of FATCA (Foreign Account Tax Compliance Act) if the defined foreign assets exceed the specified value. Thresholds are different for married and single taxpayers and are generally higher for individuals who live outside the United States. You are required to complete the form if:
- You are filing a single return and the total value of your specified foreign assets exceeds $200,000 on the last day of the tax year or more than $300,000 at any point during the year
- You are filing a joint return and the value of your specified foreign asset exceeds $400,000 on the last day of the tax year or more than $600,000 at any point during the year
Filling the FBAR doesn’t exempt you from FATCA reporting because the FBAR is filed with the U.S. Treasury, whereas Form 8938 is filed with the IRS. It is important to know that failure to file Form 8938 will result in a penalty of $10,000 per form for more than 90 days after the IRS mails you a notice of your failure to file. This will be increased by $10,000 for each 30-day period that the failure continues.
Included in standard
Tax return package