Expat Taxes

What is FATCA (IRS Form 8938)?

The Foreign Account Tax Compliance Act requiring foreign banks to report U.S. account holders to the IRS and taxpayers to file Form 8938.

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a 2010 U.S. federal law that enforces global tax transparency in two ways:

Foreign Financial Institution (FFI) Reporting: Non-U.S. banks and brokerages worldwide must identify U.S. citizen and resident clients and transmit their account balances and tax IDs (SSN/ITIN) to the IRS—or face a 30% withholding penalty on U.S.-source payments.
Individual Filing (IRS Form 8938): U.S. taxpayers with specified foreign financial assets above statutory thresholds ($50,000 on the last day of the year for single filers living in the U.S.; $200,000 for single filers living abroad) must attach Form 8938 to their Form 1040 return, in addition to filing the FBAR.