Form 8938 Due Date, Filing Requirements, Deadline, Penalties and Avoidance or Amnesty (New 2024)

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Each year, the US Government requires US Taxpayers who own foreign assets, investments, and accounts to disclose this information on Internal Revenue Service Form 8938 — in addition to filing a US Tax Return — to comply with FATCA. Technically speaking, Form 8938 refers to the IRS’ Statement of Specified Foreign Financial Assets filed by US Persons with FATCA Assets that are reportable to the Internal Revenue Service in accordance with Internal Revenue Code section 6038D. With the introduction of the Foreign Account Tax Compliance Act, the U.S. Government stockpiled even more ammunition in the Government’s fight against foreign account and asset noncompliance. FATCA requires U.S. Taxpayers to disclose their “specified foreign financial assets” directly to the IRS on Form 8938 — unlike the FBAR, which is reported to FinCEN. The 8938 Form also requires FFIs (Foreign Financial Institutions) to report U.S. account holders to the IRS. More than 110 countries have entered into FATCA Agreements (IGAs) with the U.S., which is nearly double the number of foreign countries that have entered into bilateral double income taxation treaties with the U.S. Form 8938 is due to be filed at the same time a person files their U.S. tax return (including extensions). The failure to file the form timely or completely may result in penalties. To reduce or avoid these penalties the IRS has developed several amnesty programs, collectively referred to as offshore voluntary disclosure.

We have prepared a summary explaining the basics of Form 8938, who has to file, and when.