8938 Instructions for Form 8938

Instructions for Form 8938

Department of the Treasury
Internal Revenue Service

(Rev. November 2021)

Statement of Specified Foreign Financial Assets
Section references are to the Internal
Revenue Code unless otherwise noted.

Future Developments
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.

What’s New
Continuous-use form and instructions. 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/
Form8938.

Reminders
Reporting obligations under section 6038D not affected. Rev. Proc.
2020-17, available at IRS.gov/IRB/
2020-12_IRB#REV-PROC-2020-17,
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.
For more information about section
6038D information reporting, see
IRS.gov/Businesses/Corporations/
Basic-Questions-and-Answers-onForm-8938.
Specified domestic entity reporting. 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)
Dec 10, 2021

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.
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
Who Must File, Specified Domestic
Entity, Specified Foreign Financial
Assets, Interests in Specified Foreign
Financial Assets, and Assets Not
Required To Be Reported, later.

General Instructions
Purpose of Form

Use Form 8938 to report your
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
Reporting Thresholds, later.
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/
Businesses/Comparison-ofForm-8938-and-FBAR-Requirements
for a chart comparing Form 8938 and
FBAR filing requirements.

!

When and How To File

Attach Form 8938 to your annual
return and file by the due date
(including extensions) for that return.
You must specify the
applicable calendar year or
CAUTION tax year to which your Form
8938 relates in the appropriate
space(s) at the top of the form.

!

Cat. No. 55389W

An annual return includes the
following returns.
• Form 1040.
• Form 1040-NR.
• Form 1040-SR.
• Form 1041.
• Form 1041-N.
• Form 1065.
• Form 1120.
A reference to an “annual return” or
“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
the IRS unless it is attached
CAUTION to an annual return or an
amended return.

!

Who Must File

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.

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,
Specified Domestic Entity, and Types
of Reporting Thresholds, later.
Exception if no income tax

TIP return required. If you do

not have to file an income tax
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.

Specified Person
A specified person is either a
specified individual or a specified
domestic entity, defined later.

Specified Individual
You are a specified individual if you
are one of the following.
• A U.S. citizen.
• A resident alien of the United States
for any part of the tax year (but see
Reporting Period, later).
• A nonresident alien who makes an
election to be treated as a resident
alien for purposes of filing a joint
income tax return.
• A nonresident alien who is a bona
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.
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.
Special rule for dual resident taxpayers. 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.
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).
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
assets on Form 8938 for the part of

your tax year reflected on the
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.
Specified Domestic Entity
You are a specified domestic entity if
you are one of the following.
• A closely held domestic corporation
that has at least 50% of its gross
income from passive income.
• 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
Percentage of passive assets held by
a corporation or partnership, later).
• A closely held domestic partnership
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
Percentage of passive assets held by
a corporation or partnership, later).
• A domestic trust described in
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.
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.
Constructive ownership. Sections
267(c) and (e)(3) apply for purposes
of determining a specified individual’s
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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.
Passive income. Passive income
means the part of gross income that
consists of:
• Dividends, including substitute
dividends;
• Interest;
• Income equivalent to interest,
including substitute interest;
• 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;
• Annuities;
• The excess of gains over losses
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;
• The excess of gains over losses
from transactions (including futures,
forwards, and similar transactions) in
any commodity, but not including:
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);
• 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.
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
Instructions for Form 8938 (Rev. 11-2021)

commodities), passive income does
not include the following.
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.
2. In the case of a corporation or
partnership that is a dealer in
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.
Passive income or assets of related 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.
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.
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
corporations, connected partnerships,
or the common parent.
Instructions for Form 8938 (Rev. 11-2021)

2. Partnership interests
representing at least 80% of the
profits interests or capital interests of
the partnership, other than
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
corporation or partnership for a tax
year is the weighted average
percentage of passive assets
(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.
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:

Passive
Assets

Total Assets

Q1

$150

$200

Q2

$150

$300

Q3

$300

$500

Q4

$200

$1,000

Tax Year
Totals

$800

$2,000

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.

Domestic trusts. A trust described
in section 7701(a)(30)(E) is
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.
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).
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.
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.
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.
1. The trustee is:

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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
Corporation, or the National Credit
Union Administration;
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.
3. The trustee files annual returns
and information returns by the due
date (including any applicable
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.

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.
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.
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.

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
$100,000 on the last day of the tax
year or more than $150,000 at any
time during the tax year.
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
$50,000 on the last day of the tax year
or more than $75,000 at any time
during the tax year.
Taxpayers living outside the United 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.
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.
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.
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

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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.
• 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.
• A U.S. citizen or resident who is
present in a foreign country or
countries at least 330 full days during
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.

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
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
Interests in Specified Foreign
Financial Assets, later.
Valuing Specified Foreign
Financial Assets
The value of a specified foreign
financial asset for purposes of
determining the total value of
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
determined in the foreign currency
and then converted to U.S. dollars.
See Foreign Currency Conversion,
Instructions for Form 8938 (Rev. 11-2021)

later, for rules on determining and
applying the appropriate foreign
currency exchange rate.
Value of an Interest in a Foreign
Trust During the Tax Year
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
trust. See Valuing Interests in Foreign
Trusts, later, for rules on determining
the maximum value of an interest in a
foreign trust.
Value of an Interest in a Foreign
Estate, Foreign Pension Plan, and
Foreign Deferred Compensation
Plan
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
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.
Asset With No Positive Value
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)

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.
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.
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.
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.

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
IV. Excepted Specified Foreign
Financial Assets, later.
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.

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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.
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
Investment Trusts and Domestic
Bankruptcy Trusts, later.
Related Domestic Corporations
and Partnerships
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
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).
Examples 2 through 11 may help
you decide if you have to file Form
8938.
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.

Example 3. I am not married and
do not live abroad. I sold my only
specified foreign financial asset on
October 15, when its value was
$125,000. You have to file Form
8938. You satisfy the reporting
threshold even though you do not hold
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

financial asset with a value of
$90,000. My spouse has a separate
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
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 8. My spouse and I do
not live abroad. We file separate
income tax returns and jointly own
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.
Example 9. My spouse and I file
separate income tax returns,
jointly and individually own
specified foreign financial assets,
and do not live abroad. On the last
day of the tax year, my spouse and
I jointly own a specified foreign
financial asset with a value of
$90,000. My spouse has a separate
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
do not have to file Form 8938 but your
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
-6-

you jointly own, $45,000, plus the
entire value of the asset that your
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.
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
tax year is $150,000. You and your
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
foreign financial asset with a value
of $150,000. My spouse has a
separate 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
$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
$210,000 on the last day of the tax
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)

married individual living abroad and
filing a separate return of more than
$200,000 on the last day of the tax
year.

Specified Foreign
Financial Assets
Types of Specified Foreign
Financial Assets
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).
For foreign financial assets
excepted from reporting, see Assets
Not Required To Be Reported, later.
Financial Account
A financial account is any depository
or custodial account (under
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
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

Instructions for Form 8938 (Rev. 11-2021)

the Northern Mariana Islands, Puerto
Rico, or the U.S. Virgin Islands).
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.
• It accepts deposits in the ordinary
course of a banking or similar
business.
• It holds financial assets for the
account of others as a substantial part
of its business.
• 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
(including a futures or forward
contract or option) in such securities,
partnership interests, or commodities.
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.
• Stock issued by a foreign
corporation.
• A capital or profits interest in a
foreign partnership.
• A note, bond, debenture, or other
form of indebtedness issued by a
foreign person.
• An interest in a foreign trust or
foreign estate.
• An interest rate swap, currency
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.
• An option or other derivative
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.
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.

-7-

Stock is not considered used or
held for use in the conduct of a trade
or business.
If you are required to file
Form 8938, in addition to
CAUTION reporting retirement and
pension accounts and nonretirement
savings accounts described in
Regulations section 1.1471-5(b)(2)(i),
you must report retirement and
pension accounts, nonretirement
savings accounts, and accounts
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
Model 1 IGA or Model 2 IGA. Thus,
such accounts are subject to uniform
reporting rules and must be reported
without regard to whether the account
is maintained in a jurisdiction with an
IGA.

!

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.
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.
Interests in Property Transferred
in Connection With the
Performance of Services
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.

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.
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
Valuation, earlier, and Reporting the
Value of Jointly Owned Assets, 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.
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.
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.
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

investment or bankruptcy trusts, see
Domestic Investment Trusts and
Domestic Bankruptcy Trusts, later.
Interests in Foreign Estates and
Foreign Trusts
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 Foreign Pension Plans
and Foreign Deferred
Compensation Plans
Report in Part VI your interest in the
foreign pension plan or foreign
deferred compensation plan. Do not
separately report the assets held by
the plan. See Valuing Interests in
Foreign Estates, Foreign Pension
Plans, and Foreign Deferred
Compensation Plans, later.

Reporting Period

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
-8-

starting date, February 1, and ends on
December 31.

Reporting Maximum Value

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
estimate the maximum fair market
value during the year. See Valuing
Financial Accounts and Valuing Other
Specified Foreign Financial Assets,
later.

Assets With No Positive Value
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.

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.
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
fiscal.treasury.gov/fsreports/rpt/
treasRptRateExch/
treasRptRateExch_home.htm. If no
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.

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
Instructions for Form 8938 (Rev. 11-2021)

financial asset before the last day of
the tax year.
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.

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.
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.
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
Instructions for Form 8938 (Rev. 11-2021)

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.
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.

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 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.

-9-

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.
• 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.

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
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
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.

1. A financial account that is
maintained by a U.S. payer, such as a
domestic financial institution. In
general, a U.S. payer also includes a
domestic branch of a foreign bank or
foreign insurance company and a
foreign branch or foreign subsidiary of
a U.S. financial institution. Examples
of financial accounts maintained by
U.S. financial institutions include:
• U.S. mutual funds accounts,
• IRAs (traditional or Roth),
• Section 401(k) retirement accounts,
• Qualified U.S. retirement plans, and
• Brokerage accounts maintained by
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.

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.

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.

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.

• Form 3520, Annual Return To
Report Transactions With Foreign
Trusts and Receipt of Certain Foreign
Gifts (in the case of a specified person
who is a beneficiary of a foreign trust,
see Part III of Form 3520 and its
instructions).
• Form 5471, Information Return of
U.S. Persons With Respect to Certain
Foreign Corporations.
• Form 8621, Information Return by a
Shareholder of a Passive Foreign
Investment Company or Qualified
Electing Fund.
• Form 8865, Return of U.S. Persons
With Respect to Certain Foreign
Partnerships.
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.
See Part IV. Excepted Specified
Foreign Financial Assets, later.
Joint Form 5471 or Form 8865
Filers
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.
See Part IV. Excepted Specified
Foreign Financial Assets, later.
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.
• You report the trust on a Form 3520
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
-10-

same tax year. See Form 3520-A and
its instructions.
• You report the filing of Form 3520
and 3520-A on Form 8938.
Instead, you must identify on Form
8938 how many of these forms you
file. See Part IV. Excepted Specified
Foreign Financial Assets, later.
If you are a specified
individual, you must include
CAUTION the value of the assets
reported on Forms 3520, 3520-A,
5471, 8621, and 8865 in determining
whether you satisfy the reporting
threshold that applies to you. See
Reporting Thresholds Applying to
Specified Individuals, earlier.

!

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.
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.
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.
Instructions for Form 8938 (Rev. 11-2021)

• A financial account maintained by a
financial institution organized under
the laws of the U.S. possession of
which you are a bona fide resident.
• 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
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.
• Stock or securities issued by an
entity organized under the laws of the
U.S. possession of which you are a
bona fide resident.
• An interest in an entity organized
under the laws of the U.S. possession
of which you are a bona fide resident.
• A financial instrument or contract
held for investment, provided each
issuer or counterparty that is not a
U.S. person is either an entity
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.

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
specified foreign financial asset.

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.
Continuing Failure To File
If you do not file a correct and
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.
Instructions for Form 8938 (Rev. 11-2021)

Married Taxpayers Filing a Joint
Income Tax Return
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.
Presumption of Maximum Value

specified foreign financial asset, you
may have to pay a penalty equal to
40% of that underpayment.
Examples of underpayments due to
transactions involving an undisclosed
specified foreign financial asset
include the following.
• 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.
• You do not report ownership of
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.
• You do not report a foreign pension
on Form 8938 and you received a
taxable distribution from the pension
plan that you did not report on your
income tax return.

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
presumed to own specified foreign
financial assets with a value of more
than the reporting threshold that
applies to you. See Determining the
Total Value of Your Specified Foreign
Financial Assets, earlier. In such
case, you are subject to the
failure-to-file penalties if you do not
file Form 8938.

If you underpay your tax due to fraud,
you must pay a penalty of 75% of the
underpayment due to fraud.

Reasonable Cause Exception

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.
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.
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.

Accuracy-Related Penalty
If you underpay your tax as a result of
a transaction involving an undisclosed
-11-

Fraud

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.

Statute of Limitations
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.
Extended Statute of Limitations for
Failure To Include Income
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.

For this purpose, specified foreign
financial assets include any specified
foreign financial assets in which you
have an interest without regard to the
reporting threshold that applies to you
and regardless of any exception from
reporting a specified foreign financial
asset on Form 8938.

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.
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
page 2 of this form and attach them to
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.

Period Covered

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.

Identifying Information
Lines 1 and 2
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

number (ITIN). In the case of a
specified domestic entity (see
Specified Domestic Entity, earlier),
enter the entity’s employer
identification number (EIN).

Line 3
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
(see Specified Domestic Entity,
earlier), check the applicable box for
partnership (3b), corporation (3c), or
trust (3d).

Line 4
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.
Note. If you are a paper filer and you
have more than one specified
individual or specified person, attach
a statement listing the name and TIN
of each such specified individual or
specified person.
If you are a specified

TIP individual (see Specified

Individual, earlier) for less
than the entire tax year, you only have
to report the information for the part of
the year that you are a specified
individual.

Part I. Foreign Deposit and
Custodial Accounts
Summary
Use Part I to summarize information
regarding foreign deposit and
custodial accounts reported in all
Parts V.

Line 5
Report the number of deposit
accounts reported in all Parts V.

-12-

Line 6
Report the total maximum value of
these deposit accounts.

Line 7
Report the number of custodial
accounts reported in all Parts V.

Line 8
Report the total maximum value of
these custodial accounts.

Line 9
Indicate whether any foreign deposit
or custodial accounts were closed
during the tax year.

Part II. Other Foreign
Assets Summary

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.

Line 11
Report the total maximum value of
these accounts and assets.

Line 12
Indicate whether any account was
opened or closed or any asset was
acquired or disposed of during the tax
year.

Part III. Summary of Tax
Items Attributable to
Specified Foreign
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.
• Interest.
• Dividends.
• Royalties.
• Other income.
• Gains or (losses).
• Deductions.
• Credits.

Instructions for Form 8938 (Rev. 11-2021)

Part IV. Excepted
Specified Foreign
Financial Assets

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.
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.
• Form 3520.
• Form 3520-A.
• Form 5471.
• Form 8621.
• Form 8865.

Foreign Grantor Trusts
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.

Part V. Detailed
Information for Each
Foreign Deposit and
Custodial Account
Included in the Part I
Summary

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
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)

Lines 20 Through 28

Other Joint Owners

Enter the following information for
each foreign deposit or custodial
account.

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.

Line 20
Check the box to indicate if this is a
depository or a custodial account.

Line 21
Enter the account number of the
account or other specific identifying
information for the account if there is
no account number.

Line 22
Check one or more boxes to indicate
if any of the following applies.
• The account was opened during the
tax year.
• The account was closed during the
tax year.
• The account was jointly owned with
your spouse.
• 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.
See Reporting Maximum
TIP Value, earlier, for information
on determining the maximum
value of the account.

Joint Interests in Foreign
Deposit and Custodial
Accounts
Use the following rules to determine
the maximum value to report.
Spouses Filing a Joint Return
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.
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.

-13-

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 25
If you answered “Yes” on line 24,
enter the following information.
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.
You must use the foreign
currency exchange rate on
CAUTION the last day of the tax year,
even if you closed or disposed of the
account before the last day of the tax
year.

!

Line 26a
Enter the name of the financial
institution in which the account is
maintained.

Line 26b
If you have been furnished the Global
Intermediary Identification Number
(GIIN) associated with the financial
account listed on line 26a, enter it
here.
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
the tool at IRS.gov/Businesses/
Corporations/FATCA-ForeignFinancial-Institution-List-Search-andDownload-Tool.

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.

Lines 27 and 28
Enter the mailing address of the
financial institution in which the
account is maintained.

Part VI. Detailed
Information for Each
"Other Foreign Asset"
Included in the Part II
Summary

Use Part VI to report information for
financial accounts (other than foreign
deposit and custodial accounts) and
other specified foreign financial assets
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.

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
account, see Other Specified Foreign
Financial Assets, earlier.

Line 29
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.
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.”

Enter the identifying number or other
information identifying the account or
asset.

asset held jointly by you and your
spouse on your separate Forms 8938
filed with your separate income tax
returns.

Line 31

Other Joint Owners

Line 30

Enter the following information about
the account or asset, if required.
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
income tax return filed for the tax year,
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.
See Reporting Maximum

TIP Value, earlier, for information

on determining the maximum
value of the account or asset.

Joint Interest in Other Foreign
Assets
Use the following rules to figure the
maximum value to report.
Spouses Filing a Joint Return
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.
Spouses Filing Separate Returns
You and your spouse each report the
maximum value of an account or
-14-

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.

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.

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.
You must use the foreign
currency exchange rate on
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.

!

Lines 35a Through 35e
If the account or asset you reported
on line 29 is stock of a foreign entity or
an interest in a foreign entity,
complete lines 35a through 35e.

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.
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)

Financial Institution (FFI) List Search
and Download tool. You can access
the tool at IRS.gov/Businesses/
Corporations/FATCA-ForeignFinancial-Institution-List-Search-andDownload-Tool.
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.
Completing this information may
reduce the need for the IRS to contact
you.

Line 35c
Check the box on line 35c to indicate
the type of foreign entity.

Lines 35d and 35e
Enter the mailing address of the
foreign entity.

Lines 36a Through 36e
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.
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.

Instructions for Form 8938 (Rev. 11-2021)

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.

Line 36c
Check the box to indicate if the issuer
or counterparty is a U.S. person or a
foreign person.

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.
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.
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

-15-

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.
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.
Learning about
the law or the
form . . . . . . . . . .
Preparing the
form . . . . . . . . . .
Copying,
assembling,
and sending the
form to the IRS . .

57 min.
2 hr., 57 min.

48 min.

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.

Index
A
Additional Statements 12
Assets Not Required To Be
Reported 9
C
Closely Held Domestic
Corporation 2
Closely Held Domestic
Partnership 2
Constructive Ownership 2
D
Determining the Total Value
of Your Specified
Foreign Financial
Assets 4
Asset With No Positive
Value 5
E
Excepted Specified
Domestic Entities 3
Exceptions To
Reporting 10
Duplicative Reporting 10

Foreign Grantor
Trusts 10
I
Interests in Specified
Foreign Financial
Assets 7
P
Passive Income 2
Penalties 11
Accuracy-Related
Penalty 11
Criminal Penalties 11
Failure-To-File
Penalty 11
Fraud 11
R
Reporting Maximum
Value 8
Foreign Currency
Conversion 8
Reporting Period 8

S
Special Rules 5
Specified Person 1
Excepted Specified
Domestic Entities 3
Passive Income 2
Specified Domestic
Entity 2
Specified Individual 2
T
Types of Reporting
Thresholds 4
Reporting Thresholds
Applying to Specified
Domestic Entities 4
Reporting Thresholds
Applying to Specified
Individuals 4
Types of Specified Foreign
Financial Assets 7
Financial Account 7
Foreign Financial
Institution 7
Other Specified Foreign
Financial Assets 7

-16-

V
Valuing:
Valuing Financial
Accounts 9
Valuing Interests in
Foreign Estates,
Foreign Pension
Plans, and Foreign
Deferred
Compensation
Plans 9
Valuing Interests in
Foreign Trusts 9
Valuing Other Specified
Foreign Financial
Assets 9
W
When and How To File 1
Who Must File 1