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Department of the Treasury
Internal Revenue Service
Instructions for Form 8938

(Rev. November 2021)
Statement of Specified Foreign Financial Assets

Section references are to the Internal must file Form 8938 if the total value An annual return includes the
Revenue Code unless otherwise noted. of those assets exceeds $50,000 on following returns.
the last day of the tax year or $75,000 • Form 1040.
Future Developments at any time during the tax year. • Form 1040-NR.
For the latest information about For more information on domestic • Form 1040-SR.
developments related to Form 8938 corporations, partnerships, and trusts • Form 1041.
and its instructions, such as that are specified domestic entities • Form 1041-N.
legislation enacted after they were and must file Form 8938, and the • Form 1065.
published, go to IRS.gov/Form8938. types of specified foreign financial • Form 1120.
assets that must be reported, see A reference to an “annual return” or
What’s New Who Must File Specified Domestic , “income tax return” in these
Continuous-use form and instruc- Entity Specified Foreign Financial , instructions includes a reference to
tions. Form 8938 and these Assets Interests in Specified Foreign , any return listed here, whether it is an
instructions have been converted from Financial Assets, and Assets Not income tax return or an information
an annual revision to continuous use. Required To Be Reported, later. return.
Both the form and instructions will be
Do not send a Form 8938 to
updated as needed. For the most General Instructions the IRS unless it is attached
recent versions, go to IRS.gov/ CAUTION!
to an annual return or an
Form8938. Purpose of Form
amended return.
Use Form 8938 to report your
Reminders specified foreign financial assets if the
Reporting obligations under sec- total value of all the specified foreign Who Must File
tion 6038D not affected. Rev. Proc. financial assets in which you have an Unless an exception applies, you
2020-17, available at IRS.gov/IRB/ interest is more than the appropriate must file Form 8938 if you are a
2020-12_IRB#REV-PROC-2020-17, reporting threshold. See Types of specified person (see Specified
exempts foreign trust information Reporting Thresholds, later. Person, later) that has an interest in
specified foreign financial assets and
reporting requirements on Forms Filing Form 8938 does not
the value of those assets is more than
3520 and 3520-A, for certain U.S. relieve you of the
individuals’ transactions with, and CAUTION! requirement to file FinCEN the applicable reporting threshold.
ownership of, certain tax-favored Form 114, Report of Foreign Bank If you are required to file Form
foreign trusts that are established and and Financial Accounts (FBAR), if you 8938, you must report the specified
operated exclusively or almost are otherwise required to file the foreign financial assets in which you
exclusively to provide pension or FBAR. See FinCEN Form 114 and its have an interest even if none of the
retirement benefits, or to provide instructions for FBAR filing assets affects your tax liability for the
medical disability or educational requirements. Go to IRS.gov/ year. See Specified Individual,
benefits. This does not affect any Businesses/Comparison-of- Specified Domestic Entity, and Types
reporting obligations under section Form-8938-and-FBAR-Requirements of Reporting Thresholds, later.
6038D. for a chart comparing Form 8938 and
Exception if no income tax
For more information about section FBAR filing requirements.
TIP return required. If you do
6038D information reporting, see not have to file an income tax
IRS.gov/Businesses/Corporations/ When and How To File return for the tax year, you do not
Basic-Questions-and-Answers-on- Attach Form 8938 to your annual have to file Form 8938, even if the
Form-8938. return and file by the due date value of your specified foreign
Specified domestic entity report- (including extensions) for that return. financial assets is more than the
appropriate reporting threshold.
ing. Certain domestic corporations, You must specify the
partnerships, and trusts that are applicable calendar year or
considered formed or availed of for CAUTION! tax year to which your Form Specified Person
the purpose of holding, directly or 8938 relates in the appropriate A specified person is either a
indirectly, specified foreign financial space(s) at the top of the form. specified individual or a specified
assets (specified domestic entities) domestic entity, defined later.

Dec 10, 2021 Cat. No. 55389W

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Specified Individual                      your tax year reflected on the           constructive ownership in a domestic 
You are a specified individual if you     schedule to Form 1040 or 1040-SR         corporation or partnership, except that 
are one of the following.                 required by Regulations section          section 267(c)(4) is applied as if the 
• A U.S. citizen.                         1.6012-1(b)(2)(ii)(a), provided you      family of an individual includes the 
• A resident alien of the United States   comply with the filing requirements of   spouses of the specified individual’s 
for any part of the tax year (but see     Regulations section 1.6012-1(b)(2)(ii)   family members.
Reporting Period, later).                 (a), including the requirement to timely 
                                                                                   Passive income. Passive income 
• A nonresident alien who makes an        file Form 1040 or 1040-SR and attach 
                                                                                   means the part of gross income that 
election to be treated as a resident      a properly completed Form 8833.
                                                                                   consists of:
alien for purposes of filing a joint                                               • Dividends, including substitute 
income tax return.                        Specified Domestic Entity                dividends;
• A nonresident alien who is a bona       You are a specified domestic entity if   • Interest;
fide resident of American Samoa or        you are one of the following.            • Income equivalent to interest, 
Puerto Rico. See Pub. 570, Tax Guide      • A closely held domestic corporation    including substitute interest;
for Individuals With Income From U.S.     that has at least 50% of its gross       • Rents and royalties, other than 
Possessions, for a definition of bona     income from passive income.              rents and royalties derived in the 
fide resident.                            • A closely held domestic corporation    active conduct of a trade or business 
                                          if at least 50% of its assets produce or 
Resident aliens.  You are a resident                                               conducted, at least in part, by 
                                          are held for the production of passive 
alien if you are treated as a resident                                             employees of the corporation or 
                                          income (see Passive income and 
alien for U.S. tax purposes under the                                              partnership;
                                          Percentage of passive assets held by 
green card test or the substantial                                                 • Annuities;
                                          a corporation or partnership, later).
presence test. For more information,                                               • The excess of gains over losses 
see Pub. 519, U.S. Tax Guide for          • A closely held domestic partnership    from the sale or exchange of property 
                                          that has at least 50% of its gross 
Aliens. If you qualify as a resident                                               described in Regulations section 
                                          income from passive income.
alien under either rule, you are a                                                 1.6038D-6(b)(3)(i)(F) and that gives 
specified individual.                     • A closely held domestic partnership    rise to the types of passive income 
                                          if at least 50% of its assets produce or listed above;
Special rule for dual resident tax-       are held for the production of passive   • The excess of gains over losses 
payers.  If you are a dual resident       income (see Passive income and           from transactions (including futures, 
taxpayer (within the meaning of           Percentage of passive assets held by     forwards, and similar transactions) in 
Regulations section 301.7701(b)-7(a)      a corporation or partnership, later).    any commodity, but not including:
(1)), who determines his or her           • A domestic trust described in            1. Any commodity hedging 
income tax liability for all or a part of section 7701(a)(30)(E) that has one or   transaction described in section 
the tax year as if he or she were a       more specified persons (a specified      954(c)(5)(A), or
nonresident alien as provided by          individual or a specified domestic 
                                                                                     2. Active business gains or losses 
Regulations section 301.7701(b)-7,        entity) as a current beneficiary.
file Form 8938 as follows.                                                         from the sale of commodities, but only 
                                          Closely held domestic corporation.       if substantially all the corporation’s or 
  Specified individual filing as a        A domestic corporation is closely held   partnership’s commodities are 
nonresident alien at the end of his       if, on the last day of the corporation’s property described in paragraph (1), 
or her tax year.  You are not             tax year, a specified individual         (2), or (8) of section 1221(a);
required to report specified foreign      directly, indirectly, or constructively  • The excess of foreign currency 
financial assets on Form 8938 for the     owns at least 80% of the total           gains over foreign currency losses (as 
part of your tax year covered by Form     combined voting power of all classes     defined in section 988(b)) attributable 
1040-NR, provided you comply with         of stock of the corporation entitled to  to any section 988 transaction; and
the filing requirements of Regulations    vote or at least 80% of the total value  • Net income from notional principal 
section 301.7701(b)-7(b) and (c),         of the stock of the corporation.         contracts.
including the requirement to timely file 
                                          Closely held domestic partnership. 
Form 1040-NR, as applicable, and                                                   Exception from passive income 
                                          A domestic partnership is closely held 
attach Form 8833, Treaty-Based                                                     treatment for dealers. In the case of 
                                          if, on the last day of the partnership’s 
Return Position Disclosure Under                                                   a domestic corporation or partnership 
                                          tax year, a specified individual 
Section 6114 or 7701(b).                                                           regularly acting as a dealer in property 
                                          directly, indirectly, or constructively  described in Regulations section 
  Specified individual filing as a        holds at least 80% of the capital or     1.6038D-6(b)(3)(i)(F), forward 
resident alien at the end of his or       profits interest in the partnership.     contracts, options contracts, or similar 
her tax year.  You are not required to                                             financial instruments (including 
                                          Constructive ownership.     Sections 
report specified foreign financial                                                 notional principal contracts and all 
                                          267(c) and (e)(3) apply for purposes 
assets on Form 8938 for the part of                                                instruments referenced to 
                                          of determining a specified individual’s 

                                                      -2-                          Instructions for Form 8938 (Rev. 11-2021)

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commodities), passive income does         2. Partnership interests                          DC’s weighted passive asset percentage for 
not include the following.               representing at least 80% of the                   tax  year  2021  is  40%,  that  is,  DC’s  total 
1. Any item of income or gain            profits interests or capital interests of          passive  assets  divided  by  its  total  assets 
                                                                                            ($800 / $2,000 = 40%). Because fewer than 
(other than any dividends or interest)   the partnership, other than                        50% of DC’s assets produce or are held for 
from any transaction (including          partnership interests in the common                the  production  of  passive  income  and  less 
hedging transactions and transactions    parent, is owned by one or more of                 than  50%  of  DC’s  gross  income  for  its  tax 
involving physical settlement) entered   the other connected corporations,                  year  is  passive  income,  DC  does  not  meet 
into in the ordinary course of such      connected partnerships, or the                     the  passive  asset  or  passive  income 
                                                                                            threshold  and  would  not  be  a  specified 
dealer’s trade or business as such a     common parent.                                     domestic entity. 
dealer.
                                         Percentage of passive assets held 
2. In the case of a corporation or       by a corporation or partnership.                   Domestic trusts. A trust described 
partnership that is a dealer in          For purposes of determining whether                in section 7701(a)(30)(E) is 
securities (within the meaning of        at least 50% of your assets produce                considered a specified domestic 
section 475(c)(2)), any income from      or are held for the production of                  entity if and only if the trust has one or 
any transaction entered into in the      passive income, the percentage of                  more specified persons (a specified 
ordinary course of the corporation’s or  passive assets held by the                         individual or a specified domestic 
partnership’s trade or business as a     corporation or partnership for a tax               entity) as a current beneficiary for the 
dealer in securities.                    year is the weighted average                       tax year.
                                         percentage of passive assets 
Passive income or assets of rela-                                                           Current beneficiary.    With respect 
                                         (weighted by total assets and 
ted corporations and partnerships.                                                          to a tax year, a current beneficiary is 
                                         measured quarterly). The value of 
For purposes of determining whether                                                         any person who at any time during the 
                                         assets of the corporation or 
a domestic corporation or partnership                                                       tax year is entitled to, or at the 
                                         partnership is the fair market value or 
meets the passive income or asset                                                           discretion of any person may receive, 
                                         the book value. The book value of 
test, domestic corporations and                                                             a distribution from the principal or 
                                         assets is the amount reflected on the 
domestic partnerships that are closely                                                      income of the trust (determined 
                                         corporation’s or partnership’s balance 
held by the same specified individual                                                       without regard to any power of 
                                         sheet and may be determined under 
and that are connected through stock                                                        appointment to the extent that such 
                                         either a U.S. or an international 
or partnership ownership with a                                                             power remains unexercised at the end 
                                         financial accounting standard. See 
common parent corporation or                                                                of the tax year).
                                         Example 1 below, which illustrates the 
partnership are treated as owning the 
                                         application of this weighted average               Special rule for general powers of 
combined assets and receiving the 
                                         asset rule.                                        appointment.     A current beneficiary 
combined income of all members of 
that group. For this purpose, any         Example 1. Application of the                     also includes any holder of a general 
contract, equity, or debt existing       weighted average asset rule.      The              power of appointment, whether or not 
between members of the group, as         following example illustrates the                  exercised, that was exercisable at any 
well as any items of gross income        application of the weighted average                time during the tax year. A holder of a 
arising from that contract, equity, or   asset rule.                                        general power of appointment that is 
                                                                                            exercisable only on the death of the 
debt, is eliminated.
                                          DC is a domestic corporation, the total value     holder is not a current beneficiary.
Connected stock or partnership            of  the  stock  of  which  is  owned  by  L,  a 
ownership. A domestic corporation         specified  individual.  DC  is  a  calendar  year Excepted Specified Domestic 
or partnership is considered              taxpayer.  Less  than  50%  of  DC’s  gross 
connected through stock or                income for its tax year beginning January 1,      Entities
                                          2021,  is  passive  income.  DC  has  the 
partnership interest ownership with a     following assets in 2021, measured quarterly:     Entities described in section 
common parent corporation or                                                                1473(3). An entity described in 
partnership in the following                                                                section 1473(3) and the regulations 
circumstances.                                       Passive   Total Assets                 thereunder, with the exception of a 
1. Stock representing at least 80%                      Assets                              trust that is exempt from tax under 
of the total combined voting power of     Q1            $150               $200             section 664(c), is not a specified 
                                                                                            domestic entity.
all classes of stock of the corporation   Q2            $150               $300
entitled to vote or of the value of such  Q3            $300               $500             Certain domestic trust. A trust 
corporation, other than stock of the                                                        described in section 7701(a)(30)(E) is 
                                          Q4            $200               $1,000
common parent, is owned by one or                                                           not considered a specified domestic 
more of the other connected               Tax Year                                          entity, provided that all of the following 
                                          Totals        $800               $2,000
corporations, connected partnerships,                                                       apply.
or the common parent.                                                                       1. The trustee is:

Instructions for Form 8938 (Rev. 11-2021)               -3-

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a. A bank that is examined by the         Married taxpayers filing a joint          year or more than $300,000 at any 
Office of the Comptroller of the          income tax return.   If you are           time during the tax year.
Currency, the Board of Governors of       married and you and your spouse file 
                                                                                      Presence abroad.      You satisfy the 
the Federal Reserve System, the           a joint income tax return, you satisfy 
                                                                                    presence abroad test if you are one of 
Federal Deposit Insurance                 the reporting threshold only if the total 
                                                                                    the following.
Corporation, or the National Credit       value of your specified foreign 
                                                                                    • A U.S. citizen who has been a bona 
Union Administration;                     financial assets is more than 
                                                                                    fide resident of a foreign country or 
b. A financial institution that is        $100,000 on the last day of the tax 
                                                                                    countries for an uninterrupted period 
registered with and regulated or          year or more than $150,000 at any 
                                                                                    that includes an entire tax year.
examined by the Securities and            time during the tax year.
                                                                                    • A U.S. citizen or resident who is 
Exchange Commission; or                   Married taxpayers filing                  present in a foreign country or 
c. A domestic corporation                 separate income tax returns.    If you    countries at least 330 full days during 
described in section 1473(3)(A) or        are married and file a separate           any period of 12 consecutive months 
(B), and the regulations issued with      income tax return from your spouse,       that ends in the tax year being 
respect to those provisions.              you satisfy the reporting threshold       reported.
2. The trustee has supervisory            only if the total value of your specified 
authority over or fiduciary obligations   foreign financial assets is more than     Reporting Thresholds Applying to 
with regard to the specified foreign      $50,000 on the last day of the tax year 
                                                                                    Specified Domestic Entities
financial assets held by the trust.       or more than $75,000 at any time 
                                          during the tax year.                      If you are a specified domestic entity, 
3. The trustee files annual returns                                                 you satisfy the reporting threshold 
and information returns by the due        Taxpayers living outside the Uni-         only if the total value of your specified 
date (including any applicable            ted States. If your tax home is in a      foreign financial assets is more than 
extensions) on behalf of the trust.       foreign country, you meet one of the      $50,000 on the last day of the tax year 
                                          presence abroad tests described           or more than $75,000 at any time 
Domestic trusts owned by one or           next, and no exception applies, file      during the tax year.
more specified persons.   A trust         Form 8938 with your income tax 
described in section 7701(a)(30)(E) to    return if you satisfy the reporting       Determining the Total Value of 
the extent the trust or any part of the   threshold discussed next that applies     Your Specified Foreign 
trust is treated as owned by one or       to you.                                   Financial Assets
more specified persons under 
sections 671 through 678 and the          Unmarried taxpayers.      If you are      You must figure the total value of the 
regulations.                              not married, you satisfy the reporting    specified foreign financial assets in 
                                          threshold only if the total value of your which you have an interest to 
Types of Reporting Thresholds             specified foreign financial assets is     determine if you satisfy the reporting 
Reporting Thresholds Applying to          more than $200,000 on the last day of     threshold that applies to you. To 
Specified Individuals                     the tax year or more than $300,000 at     determine if you have an interest in a 
                                          any time during the tax year.             specified foreign financial asset, see 
If you are a specified individual, your                                             Interests in Specified Foreign 
applicable reporting threshold            Married taxpayers filing a joint 
                                                                                    Financial Assets, later.
depends upon whether you are              income tax return.   If you are 
married, file a joint federal income tax  married and you and your spouse file 
                                                                                    Valuing Specified Foreign 
return, and live inside (or outside) the  a joint income tax return, you satisfy 
United States.                            the reporting threshold only if the total Financial Assets
                                          value of your specified foreign           The value of a specified foreign 
Taxpayers living in the United            financial assets is more than             financial asset for purposes of 
States. If you do not live outside the    $400,000 on the last day of the tax       determining the total value of 
United States, you satisfy the            year or more than $600,000 at any         specified foreign financial assets in 
reporting threshold discussed next        time during the tax year.                 which you have an interest during the 
that applies to you, and no exception                                               tax year or on the last day of the tax 
applies, file Form 8938 with your         Married taxpayers filing 
                                                                                    year is the asset's fair market value. 
income tax return.                        separate income tax returns.    If you 
                                                                                    For purposes of figuring the total value 
                                          are married and file a separate 
                                                                                    of specified foreign financial assets, 
Unmarried taxpayers.      If you are      income tax return from your spouse, 
                                                                                    the value of a specified foreign 
not married, you satisfy the reporting    you satisfy the reporting threshold 
                                                                                    financial asset denominated in a 
threshold only if the total value of your only if the total value of your specified 
                                                                                    foreign currency must first be 
specified foreign financial assets is     foreign financial assets is more than 
                                                                                    determined in the foreign currency 
more than $50,000 on the last day of      $200,000 on the last day of the tax 
the tax year or more than $75,000 at                                                and then converted to U.S. dollars. 
any time during the tax year.                                                       See Foreign Currency Conversion, 

                                                      -4-                           Instructions for Form 8938 (Rev. 11-2021)

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later, for rules on determining and depends on whether the other owner Bona Fide Resident of a U.S.
applying the appropriate foreign is your spouse and, if so, whether Possession
currency exchange rate. your spouse is a specified individual
Do not include the value of specified
and whether you file a joint or
foreign financial assets you are not
Value of an Interest in a Foreign separate return.
required to report because you are a
Trust During the Tax Year Joint ownership with spouse filing bona fide resident of a U.S.
If you do not know or have reason to joint income tax return. If you and possession. See Bona Fide Resident
know based on readily accessible your spouse file a joint income tax of a U.S. Possession under Assets
information the fair market value of return and, therefore, would file one Not Required To Be Reported , later.
your interest in a foreign trust during combined Form 8938 for the tax year,
the tax year, the value to be included include the value of the asset jointly Owners of Certain Domestic Trusts
in determining the total value of your owned with your spouse only once to
Do not include the value of specified
specified foreign financial assets determine the total value of all of the
foreign financial assets you are not
during the tax year is the maximum specified foreign financial assets you
required to report because you are an
value of your interest in the foreign and your spouse own.
owner of a domestic widely held fixed
trust. See Valuing Interests in Foreign Joint ownership with spouse filing investment trust or a domestic
Trusts, later, for rules on determining separate income tax return. If you liquidating trust created under
the maximum value of an interest in a and your spouse are specified chapter 7 or chapter 11 of the
foreign trust. individuals and you each file a Bankruptcy Code. See Domestic
separate annual return, include Investment Trusts and Domestic
Value of an Interest in a Foreign one-half of the value of the asset Bankruptcy Trusts, later.
Estate, Foreign Pension Plan, and jointly owned with your spouse to
Foreign Deferred Compensation determine the total value of all of your Related Domestic Corporations
Plan specified foreign financial assets. and Partnerships
If you do not know or have reason to Joint ownership with a spouse To determine if you satisfy the
know based on readily accessible who is not a specified individual or applicable reporting threshold, a
information the fair market value of someone other than a spouse. specified domestic entity that is a
your interest in a foreign estate, Each joint owner includes the entire corporation or partnership and that
foreign pension plan, or foreign value of the jointly owned asset to has an interest in any specified
deferred compensation plan during determine the total value of all of that foreign financial asset is treated as
the tax year, the value to be included joint owner's specified foreign owning all specified foreign financial
in determining the total value of your financial assets. assets held by all related corporations
specified foreign financial assets Special Rules or partnerships that are closely held
during the tax year is the fair market by the same specified individual
value, determined as of the last day of Assets Reported on Another Form (excluding specified foreign financial
the tax year, of the currency and other Specified individual. If you are a assets that are excluded from
property distributed during the tax specified individual, include the value reporting under Part IV of Form 8938
year to you. If you received no of all specified foreign financial or because you are the owner of a
distributions during the tax year and assets, even if they are reported on domestic widely held fixed investment
do not know or have reason to know another form listed in Part IV to trust or a domestic liquidating trust
based on readily accessible determine if you satisfy the reporting created under chapter 7 or chapter 11
information the fair market value of threshold that applies to you. See Part of the Bankruptcy Code).
your interest, use a value of zero for IV. Excepted Specified Foreign Examples 2 through 11 may help
the interest. Financial Assets, later. you decide if you have to file Form
Asset With No Positive Value Specified domestic entity. If you 8938.
are a specified domestic entity, Example 2. I am not married and
If the maximum value of a specified exclude the value of any specified do not live abroad. The total value
foreign financial asset is less than foreign financial asset reported on of my specified foreign financial
zero, use a value of zero for the asset. another form listed in Part IV to assets does not exceed $49,000
determine if you satisfy the applicable during the tax year. You do not
Joint Interest Valuation reporting threshold. have to file Form 8938. You do not
If you jointly own an asset with satisfy the reporting threshold of more
someone else, the value that you use than $50,000 on the last day of the tax
to determine the total value of all of year or more than $75,000 at any time
your specified foreign financial assets during the tax year.

Instructions for Form 8938 (Rev. 11-2021) -5-

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Example 3. I am not married and financial asset with a value of you jointly own, $45,000, plus the
do not live abroad. I sold my only $90,000. My spouse has a separate entire value of the asset that your
specified foreign financial asset on interest in a specified foreign spouse separately owns, $10,000.
October 15, when its value was financial asset with a value of You have an interest in specified
$125,000. You have to file Form $10,000. I have a separate interest foreign financial assets in the amount
8938. You satisfy the reporting in a specified foreign financial of $46,000 on the last day of the tax
threshold even though you do not hold asset with a value of $1,000. You year. This is one-half of the value of
any specified foreign financial assets and your spouse have to file a the asset that you jointly own,
on the last day of the tax year combined Form 8938. You and your $45,000, plus the entire value of the
because you did own specified spouse have an interest in specified asset that you separately own,
foreign financial assets of more than foreign financial assets in the amount $1,000. Your spouse satisfies the
$75,000 at any time during the tax of $101,000 on the last day of the tax reporting threshold of more than
year. year. This is the entire value of the $50,000 on the last day of the tax
Example 4. I am not married and specified foreign financial asset that year. You do not satisfy the reporting
do not live abroad. An unrelated you jointly own, $90,000, plus the threshold of more than $50,000 on the
U.S. resident and I jointly own a value of the asset that your spouse last day of the tax year or more than
specified foreign financial asset separately owns, $10,000, plus the $75,000 at any time during the tax
valued at $60,000. You each have value of the asset that you separately year.
to file Form 8938. You each satisfy the own, $1,000. You and your spouse Example 10. My spouse and I
reporting threshold of more than satisfy the reporting threshold of more are U.S. citizens but live abroad for
$50,000 on the last day of the tax than $100,000 on the last day of the the entire tax year and file a joint
year. tax year. income tax return. The total value
Example 5. I am not married and Example 8. My spouse and I do of our combined specified foreign
do not live abroad. I own an entity not live abroad. We file separate financial assets on any day of the
disregarded for tax purposes, income tax returns and jointly own tax year is $150,000. You and your
which owns one specified foreign a specified foreign financial asset spouse do not have to file Form 8938.
financial asset valued at $30,000. valued at $60,000 for the entire You do not satisfy the reporting
In addition, I own a specified year. Neither you nor your spouse threshold of more than $400,000 on
foreign financial asset valued at has to file Form 8938. You each use the last day of the tax year or more
$25,000. You have to file Form 8938. one-half of the value of the asset, than $600,000 at any time during the
You own both the specified foreign $30,000, to determine the total value tax year for married individuals who
financial asset owned by the of specified foreign financial assets live abroad and file a joint income tax
disregarded entity and the specified that you each own. Neither of you return.
foreign financial asset you own satisfies the reporting threshold of Example 11. My spouse and I
directly, for a total value of $55,000. more than $50,000 on the last day of live abroad and file separate
You satisfy the reporting threshold of the tax year or more than $75,000 at income tax returns. My spouse is
more than $50,000 on the last day of any time during the tax year. not a specified individual. On the
the tax year. Example 9. My spouse and I file last day of the tax year, my spouse
Example 6. My spouse and I do separate income tax returns, and I jointly own a specified
not live abroad. We file a joint jointly and individually own foreign financial asset with a value
income tax return and jointly own specified foreign financial assets, of $150,000. My spouse has a
a single specified foreign financial and do not live abroad. On the last separate interest in a specified
asset valued at $60,000. You and day of the tax year, my spouse and foreign financial asset with a value
your spouse do not have to file Form I jointly own a specified foreign of $10,000. I have a separate
8938. You do not satisfy the reporting financial asset with a value of interest in a specified foreign
threshold of more than $100,000 on $90,000. My spouse has a separate financial asset with a value of
the last day of the tax year or more interest in a specified foreign $60,000. You have to file Form 8938
than $150,000 at any time during the financial asset with a value of but your spouse, who is not a
tax year. $10,000. I have a separate interest specified individual, does not. You
in a specified foreign financial have an interest in specified foreign
Example 7. My spouse and I do asset with a value of $1,000. You financial assets in the amount of
not live abroad. We file a joint do not have to file Form 8938 but your $210,000 on the last day of the tax
income tax return, and jointly and spouse does. Your spouse has an year. This is the entire value of the
individually own specified foreign interest in specified foreign financial asset that you jointly own, $150,000,
financial assets. On the last day of assets in the amount of $55,000 on plus the entire value of the asset that
the tax year, my spouse and I the last day of the tax year. This is you separately own, $60,000. You
jointly own a specified foreign one-half of the value of the asset that satisfy the reporting threshold for a

-6- Instructions for Form 8938 (Rev. 11-2021)

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married individual living abroad and the Northern Mariana Islands, Puerto Stock is not considered used or
filing a separate return of more than Rico, or the U.S. Virgin Islands). held for use in the conduct of a trade
$200,000 on the last day of the tax or business.
Foreign financial institution. In
year.
most cases, a foreign financial If you are required to file
institution is any financial institution Form 8938, in addition to
Specified Foreign CAUTION!
that is not a U.S. entity and satisfies reporting retirement and
Financial Assets one or more of the following. pension accounts and nonretirement
Types of Specified Foreign • It accepts deposits in the ordinary savings accounts described in
course of a banking or similar Regulations section 1.1471-5(b)(2)(i),
Financial Assets
business. you must report retirement and
Specified foreign financial assets • It holds financial assets for the pension accounts, nonretirement
include the following assets. account of others as a substantial part savings accounts, and accounts
1. Financial accounts maintained of its business. satisfying conditions similar to those
by a foreign financial institution. • It is engaged (or holds itself out as described in Regulations section
2. The following foreign financial being engaged) primarily in the 1.1471-5(b)(2)(i) that are otherwise
assets if they are held for investment business of investing, reinvesting, or excluded from the definition of a
and not held in an account maintained trading in securities, partnership financial account by an applicable
by a financial institution. interests, commodities, or any interest Model 1 IGA or Model 2 IGA. Thus,
(including a futures or forward such accounts are subject to uniform
a. Stock or securities issued by
contract or option) in such securities, reporting rules and must be reported
someone that is not a U.S. person
partnership interests, or commodities. without regard to whether the account
(including stock or securities issued
is maintained in a jurisdiction with an
by a person organized under the laws
of a U.S. possession). Other Specified Foreign Financial IGA.
Assets
b. Any interest in a foreign entity. Interests in Specified Foreign
c. Any financial instrument or Examples of other specified foreign
Financial Assets
contract that has an issuer or financial assets include the following,
counterparty that is not a U.S. person if they are held for investment and not You have an interest in a specified
(including a financial contract issued held in a financial account. foreign financial asset if any income,
by, or with a counterparty that is, a • Stock issued by a foreign gains, losses, deductions, credits,
person organized under the laws of a corporation. gross proceeds, or distributions from
U.S. possession). • A capital or profits interest in a holding or disposing of the asset are
foreign partnership. or would be required to be reported,
For foreign financial assets • A note, bond, debenture, or other included, or otherwise reflected on
excepted from reporting, see Assets form of indebtedness issued by a your income tax return.

Not Required To Be Reported , later. foreign person. You have an interest in a specified
• An interest in a foreign trust or foreign financial asset even if no
Financial Account foreign estate. income, gains, losses, deductions,
A financial account is any depository • An interest rate swap, currency credits, gross proceeds, or
or custodial account (under swap, basis swap, interest rate cap, distributions from holding or disposing
Regulations section 1.1471-5(b)(1)(i) interest rate floor, commodity swap, of the asset are included or reflected
or (ii)) maintained by a foreign equity swap, equity index swap, credit on your income tax return for this tax
financial institution as well as any default swap, or similar agreement year.
equity or debt interest in a foreign with a foreign counterparty.
financial institution (other than • An option or other derivative
Interests in Property Transferred
interests that are regularly traded on instrument with respect to any of
an established securities market) or these examples or with respect to any in Connection With the
any cash value life insurance or currency or commodity that is entered Performance of Services
annuity contract maintained by an into with a foreign counterparty or You are first considered to have an
insurance company or other foreign issuer. interest in property transferred in
financial institution. A specified foreign Assets held for investment. You connection with the performance of
financial asset includes a financial hold an asset, including a partnership services on the first date that the
account maintained by a financial interest, for investment if you do not property is substantially vested (within
institution that is organized under the use it in, or hold it for use in, the the meaning of Regulations section
laws of a U.S. possession (American conduct of any trade or business. 1.83-3(b)) or, if you have made a valid
Samoa, Guam, the Commonwealth of section 83(b) election with respect to
the property, on the date of transfer of
the property.

Instructions for Form 8938 (Rev. 11-2021) -7-

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Interests in Assets Held by investment or bankruptcy trusts, see starting date, February 1, and ends on
Disregarded Entities Domestic Investment Trusts and December 31.
Domestic Bankruptcy Trusts, later.
If you are the owner of a disregarded
Reporting Maximum Value
entity, you have an interest in any
Interests in Foreign Estates and You must report the maximum value
specified foreign financial assets
owned by the disregarded entity. Foreign Trusts during the tax year of each specified
foreign financial asset reported on
An interest in a foreign trust or a
Form 8938. In most cases, the value
Interests in Jointly Owned Assets foreign estate is not a specified
of a specified foreign financial asset is
A joint owner of an asset has an foreign financial asset unless you
its fair market value. An appraisal by a
interest in the entire asset. For special know or have reason to know based
third party is not necessary to
rules for interests in assets jointly on readily accessible information of
estimate the maximum fair market
owned by spouses, see Joint Interest the interest. If you receive a
value during the year. See Valuing
Valuation, earlier, and Reporting the distribution from the foreign trust or
Financial Accounts and Valuing Other
Value of Jointly Owned Assets, later. foreign estate, you are considered to
Specified Foreign Financial Assets,
know of the interest.
later.
Interests in Assets Held in
Interests in Foreign Pension Plans Assets With No Positive Value
Financial Accounts
and Foreign Deferred If the maximum value of a specified
If you have an interest in a financial foreign financial asset is less than
Compensation Plans
account that holds specified foreign zero, use a value of zero as the
financial assets, you do not have to Report in Part VI your interest in the
maximum value of the asset.
report the assets held in the account. foreign pension plan or foreign
deferred compensation plan. Do not Foreign Currency Conversion
Interests in Assets Generating separately report the assets held by If your specified foreign financial asset
the plan. See Valuing Interests in
Certain Unearned Income of is denominated in a foreign currency
Foreign Estates, Foreign Pension during the tax year, the maximum
Children Plans, and Foreign Deferred value of the asset must be determined
If you file Form 8814, Parents' Compensation Plans, later. in the foreign currency and then
Election To Report Child's Interest converted to U.S. dollars.
and Dividends, with your income tax Reporting Period
return to elect to include in your gross Unless an exception applies, the In most cases, you must use the
income certain unearned income of reporting period for Form 8938 is your U.S. Treasury Bureau of the Fiscal
your child (the “kiddie tax” election), tax year. Service foreign currency exchange
you have an interest in any specified rate for purchasing U.S. dollars. You
foreign financial asset held by the Exception for Partial Tax Years can find this rate on
child. of Specified Individuals fiscal.treasury.gov/fsreports/rpt/
If you are a specified individual for treasRptRateExch/
Interests in Assets Held by Entities less than the entire tax year, the treasRptRateExch_home.htm. If no
That Are Not Disregarded Entities reporting period is the part of the year U.S. Treasury Bureau of the Fiscal
that you are a specified individual. Service exchange rate is available,
In most cases, you do not own an you must use another publicly
interest in any specified foreign Example 12. John is a calendar
available foreign currency exchange
financial asset held by a partnership, year taxpayer. The Form 8938
rate for purchasing U.S. dollars and
corporation, trust, or estate solely as a reporting period begins on January 1
disclose the rate on Form 8938.
result of your status as a partner, and ends on December 31.
shareholder, or beneficiary. Example 13. Agnes was a single Currency Determination Date
calendar year taxpayer who died on Use the currency exchange rate on
Interests in Assets Held by March 6. The Form 8938 reporting the last day of the tax year to figure
Grantor Trust period begins on January 1 and ends the maximum value of a specified
on March 6. foreign financial asset or the value of
If you are considered the owner under
a specified foreign financial asset for
the grantor trust rules (sections 671 Example 14. George, a calendar
the purpose of determining the total
through 679) of any part of a trust, you year taxpayer, is not a U.S. citizen or
value of your specified foreign
have an interest in any specified married. George arrived in the United
financial assets to see whether you
foreign financial asset held by that States on February 1 and satisfied the
have met the reporting threshold. Use
part of the trust you are considered to substantial presence test for the tax
this rate even if you sold or otherwise
own. For exceptions from reporting for year. The Form 8938 reporting period
disposed of the specified foreign
owners of certain domestic begins on George's U.S. residency

-8- Instructions for Form 8938 (Rev. 11-2021)

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financial asset before the last day of   asset. If you file Form 8814, you must    Valuing Interests in Foreign 
the tax year.                            report any specified foreign financial    Trusts
                                         asset your child owns and include the 
                                                                                   If you are a beneficiary of a foreign 
Exception for Financial Account          maximum value of the entire asset.
                                                                                   trust, the maximum value of your 
Statement Currency Conversion                                                      interest in the trust is the sum of the 
Rate                                     Other Joint Ownership
                                                                                   following amounts.
You may rely on the foreign currency     If you are a joint owner of a specified   • The value of all of the cash or other 
conversion rate reflected in a financial foreign financial asset and you cannot    property distributed during the tax 
account statement issued at least        use one of the special rules for          year from the trust to you as a 
annually by the financial institution    married individuals who file a joint tax  beneficiary.
maintaining the account.                 return, you must report the specified     • The value using the valuation tables 
                                         foreign financial asset and include the   under section 7520 of your right as a 
Reporting the Value of Jointly           maximum value of the entire asset.        beneficiary to receive mandatory 
Owned Assets                                                                       distributions as of the last day of the 
                                         Valuing Financial Accounts
If you own an asset jointly with one or                                            tax year.
                                         You may rely on periodic account 
more persons, you must report the 
                                         statements for the tax year to report a   Valuing Interests in Foreign 
asset's maximum value as follows.
                                         financial account's maximum value         Estates, Foreign Pension Plans, 
                                         unless you know or have reason to 
Married Specified Individuals                                                      and Foreign Deferred 
                                         know based on readily accessible          Compensation Plans
Filing a Joint Income Tax Return         information that the statements do not 
                                                                                   If you have an interest in a foreign 
If you are married and you and your      reflect a reasonable estimate of the 
                                                                                   estate, foreign pension plan, or 
spouse file a joint income tax return,   maximum account value during the 
                                                                                   foreign deferred compensation plan, 
report any specified foreign financial   tax year.
                                                                                   the maximum value of your interest is 
asset that you jointly own only once 
                                         Valuing Other Specified                   the fair market value of your beneficial 
and include the maximum value of the 
entire asset (and not just the           Foreign Financial Assets                  interest in the assets of the estate, 
maximum value of your interest in the    In most cases, you may use the value      pension plan, or deferred 
asset). Also, you must report any        of a specified foreign financial asset    compensation plan as of the last day 
specified foreign financial asset that   that is not a financial account and that  of the tax year. If you do not know or 
you or your spouse separately owns       is held for investment and not held in    have reason to know based on readily 
and include the maximum value of the     an account maintained by a financial      accessible information the fair market 
entire asset. If you and your spouse     institution as of the last day of the tax value as of the last day of the tax year, 
file a joint income tax return that      year, unless you know or have reason      the maximum value is the fair market 
includes Form 8814, you must report      to know based on readily accessible       value, determined as of the last day of 
any specified foreign financial asset    information that the value does not       the tax year, of the cash and other 
your child owns only once and include    reflect a reasonable estimate of the      property distributed during the tax 
the maximum value of the entire          maximum value of the asset during         year to you as a beneficiary or 
asset.                                   the tax year.                             participant. If you received no 
                                                                                   distributions during the tax year and 
                                          Example 15. I have publicly              do not know or have reason to know 
Married Specified Individuals            traded foreign stock not held in a        based on readily accessible 
Filing Separate Income Tax               financial account that has a fair         information the fair market value of 
Returns                                  market value as of the last day of        your interest as of the last day of the 
                                         the tax year of $100,000, although, 
If you are married and you and your                                                tax year, use a value of zero as the 
                                         based on daily price information 
spouse are specified individuals who                                               maximum value of the asset.
                                         that is readily available, the 
file separate income tax returns, both 
                                         52-week high trading price for the 
you and your spouse report any                                                     Assets Not Required To 
                                         stock results in a maximum value 
specified foreign financial asset that                                             Be Reported
                                         of the stock during the tax year of 
you jointly own on your separate                                                   You are not required to report the 
                                         $150,000. If you are required to file 
Forms 8938, and both you and your                                                  following assets.
                                         Form 8938, the maximum value of the 
spouse must include the maximum 
                                         foreign stock to be reported is 
value of the entire asset on your                                                  Certain Financial Accounts
                                         $150,000, based on readily available 
separate Forms 8938. You must also                                                 The following financial accounts and 
                                         information of the stock’s maximum 
report any specified foreign financial                                             the assets held in such accounts are 
                                         value during the tax year.
asset that you own individually on                                                 not specified foreign financial assets 
your separate Form 8938 and include                                                and do not have to be reported on 
the maximum value of the entire                                                    Form 8938.

Instructions for Form 8938 (Rev. 11-2021)              -9-

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1. A financial account that is • Form 3520, Annual Return To same tax year. See Form 3520-A and
maintained by a U.S. payer, such as a Report Transactions With Foreign its instructions.
domestic financial institution. In Trusts and Receipt of Certain Foreign • You report the filing of Form 3520
general, a U.S. payer also includes a Gifts (in the case of a specified person and 3520-A on Form 8938.
domestic branch of a foreign bank or who is a beneficiary of a foreign trust,
foreign insurance company and a see Part III of Form 3520 and its Instead, you must identify on Form
foreign branch or foreign subsidiary of instructions). 8938 how many of these forms you
a U.S. financial institution. Examples • Form 5471, Information Return of file. See Part IV. Excepted Specified
of financial accounts maintained by U.S. Persons With Respect to Certain Foreign Financial Assets, later.
U.S. financial institutions include: Foreign Corporations. If you are a specified
• U.S. mutual funds accounts, • Form 8621, Information Return by a individual, you must include
• IRAs (traditional or Roth), Shareholder of a Passive Foreign CAUTION! the value of the assets
• Section 401(k) retirement accounts, Investment Company or Qualified reported on Forms 3520, 3520-A,
• Qualified U.S. retirement plans, and Electing Fund. 5471, 8621, and 8865 in determining
• Brokerage accounts maintained by • Form 8865, Return of U.S. Persons whether you satisfy the reporting
U.S. financial institutions. With Respect to Certain Foreign threshold that applies to you. See
2. A financial account that is Partnerships. Reporting Thresholds Applying to
maintained by a dealer or trader in Specified Individuals, earlier.
Instead, you must identify on Form
securities or commodities if all of the
8938 the form(s) on which you report
holdings in the account are subject to
the specified foreign financial asset Domestic Investment Trusts
the mark-to-market accounting rules
and how many of these forms you file.
for dealers in securities or an election If you are considered the owner under
See Part IV. Excepted Specified
under section 475(e) or (f) is made for the grantor trust rules (sections 671
Foreign Financial Assets, later.
all of the holdings in the account. through 679) of any part of a domestic
widely held fixed investment trust
Certain Financial Assets Joint Form 5471 or Form 8865 under Regulations section 1.671-5,
You do not have to report any asset Filers you do not have to report any
that is not held in a financial account if If you are included as part of a joint specified foreign financial asset held
the asset is subject to the Form 5471 or Form 8865 filing and by the part of the trust you are
mark-to-market accounting rules for provide the notification required by considered to own.
dealers in securities or commodities Regulations section 1.6038-2(i) or
or an election under section 475(e) or 1.6038-3(c), you are considered to Domestic Bankruptcy Trusts
(f) is made for the asset. have filed that form for purposes of If you are considered the owner under
Foreign Equivalent to U.S. the requirement to report specified the grantor trust rules (sections 671
foreign financial assets on Form 8938.
Social Security through 679) of any part of a domestic
See Part IV. Excepted Specified liquidating trust under Regulations
Payments or the rights to receive the Foreign Financial Assets, later. section 301.7701-4(d) that is created
foreign social security equivalent to
under chapter 7 or chapter 11 of the
U.S. social security, social insurance Foreign Grantor Trusts Bankruptcy Code, you do not have to
benefits, or another similar program of
a foreign government are not If you are considered the owner under report any specified foreign financial
specified foreign financial assets and the grantor trust rules (sections 671 asset held by the part of the trust you
are not reportable. The foreign social through 679) of any part of a foreign are considered to own.
security equivalent to U.S. social trust, you do not have to report any of
security does not include an interest in the specified foreign financial assets Bona Fide Resident of a U.S.
a foreign pension plan, which, as held by the part of the trust you are Possession
described above, is subject to section considered to own if you satisfy the If you are a bona fide resident of a
6038D reporting. following conditions. U.S. possession (American Samoa,
• You report the trust on a Form 3520 Guam, the Commonwealth of the
Exceptions To Reporting that you timely file with the IRS for the Northern Mariana Islands, Puerto
Duplicative Reporting same tax year. See Part III of Form Rico, or the U.S. Virgin Islands), do
3520 and its instructions.
You do not have to report any asset not include the value of the following
• You ensure that the trust timely files
on Form 8938 if you report it on one or assets to determine if you satisfy the
Form 3520-A, Annual Information
more of the following forms that you reporting threshold that applies to
Return of Foreign Trust With a U.S.
timely file with the IRS for the same you. If you are required to file Form
Owner, (or you timely file a substitute
tax year. 8938, you do not have to report the
Form 3520-A) with the IRS for the following specified foreign financial
assets on Form 8938.
-10- Instructions for Form 8938 (Rev. 11-2021)

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• A financial account maintained by a     Married Taxpayers Filing a Joint          specified foreign financial asset, you 
financial institution organized under     Income Tax Return                         may have to pay a penalty equal to 
the laws of the U.S. possession of                                                  40% of that underpayment.
                                          If you are married and you and your 
which you are a bona fide resident.
                                          spouse file a joint income tax return,      Examples of underpayments due to 
• A financial account maintained by a 
                                          the failure-to-file penalties apply as if transactions involving an undisclosed 
branch of a financial institution not 
                                          you and your spouse were a single         specified foreign financial asset 
organized under the laws of the U.S. 
                                          person. Your and your spouse’s            include the following.
possession of which you are a bona 
                                          liability for all penalties is joint and  • You do not report ownership of 
fide resident, if the branch is subject 
                                          several.                                  shares in a foreign corporation on 
to the same tax and information 
                                                                                    Form 8938 and you received taxable 
reporting requirements that apply to a 
financial institution organized under     Presumption of Maximum Value              distributions from the company that 
                                                                                    you did not report on your income tax 
the laws of the U.S. possession of        If the IRS determines that you have an 
                                                                                    return.
which you are a bona fide resident.       interest in one or more specified 
• Stock or securities issued by an        foreign financial assets and asks you     • You do not report ownership of 
                                                                                    shares in a foreign company on Form 
entity organized under the laws of the    for information about the value of any 
                                                                                    8938 and you sold the shares in the 
U.S. possession of which you are a        asset, but you do not provide enough 
                                                                                    company for a gain and did not report 
bona fide resident.                       information for the IRS to determine 
                                                                                    the gain on your income tax return.
• An interest in an entity organized      the value of the asset, you are 
under the laws of the U.S. possession     presumed to own specified foreign         • You do not report a foreign pension 
                                                                                    on Form 8938 and you received a 
of which you are a bona fide resident.    financial assets with a value of more 
                                                                                    taxable distribution from the pension 
• A financial instrument or contract      than the reporting threshold that 
                                                                                    plan that you did not report on your 
held for investment, provided each        applies to you. See Determining the 
                                                                                    income tax return.
issuer or counterparty that is not a      Total Value of Your Specified Foreign 
U.S. person is either an entity           Financial Assets, earlier. In such        Fraud
organized under the laws of the U.S.      case, you are subject to the              If you underpay your tax due to fraud, 
possession of which you are a bona        failure-to-file penalties if you do not   you must pay a penalty of 75% of the 
fide resident or a bona fide resident of  file Form 8938.                           underpayment due to fraud.
the U.S. possession of which you are 
a bona fide resident.                     Reasonable Cause Exception                Criminal Penalties
                                          No penalty will be imposed if you fail    In addition to the penalties already 
Penalties                                 to file Form 8938 or to disclose one or   discussed, if you fail to file Form 8938, 
You may be subject to penalties if you    more specified foreign financial assets   fail to report an asset, or have an 
fail to timely file a correct Form 8938   on Form 8938 and the failure is due to    underpayment of tax, you may be 
or if you have an understatement of       reasonable cause and not to willful       subject to criminal penalties.
tax relating to an undisclosed            neglect. You must affirmatively show      Statute of Limitations
specified foreign financial asset.        the facts that support a reasonable       If you fail to file Form 8938 or fail to 
Failure-To-File Penalty                   cause claim.                              report a specified foreign financial 
If you are required to file Form 8938     The determination of whether a            asset that you are required to report, 
but do not file a complete and correct    failure to disclose a specified foreign   the statute of limitations for the tax 
Form 8938 by the due date (including      financial asset on Form 8938 was due      year may remain open for all or a part 
extensions), you may be subject to a      to reasonable cause and not due to        of your income tax return until 3 years 
penalty of $10,000.                       willful neglect will be determined on a   after the date on which you file Form 
                                          case-by-case basis, taking into           8938.
Continuing Failure To File                account all pertinent facts and 
If you do not file a correct and          circumstances.                            Extended Statute of Limitations for 
                                                                                    Failure To Include Income
complete Form 8938 within 90 days         Effect of foreign jurisdiction laws. 
after the IRS mails you a notice of the   The fact that a foreign jurisdiction      If you do not include in your gross 
failure to file, you may be subject to an would impose a civil or criminal          income an amount relating to one or 
additional penalty of $10,000 for each    penalty on you if you disclose the        more specified foreign financial 
30-day period (or part of a period)       required information is not reasonable    assets, and the amount you omit is 
during which you continue to fail to file cause.                                    more than $5,000, any tax you owe for 
Form 8938 after the 90-day period                                                   the tax year can be assessed at any 
has expired. The maximum additional       Accuracy-Related Penalty                  time within 6 years after you filed your 
penalty for a continuing failure to file  If you underpay your tax as a result of   return.
Form 8938 is $50,000.                     a transaction involving an undisclosed 

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

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For this purpose, specified foreign number (ITIN). In the case of a Line 6
financial assets include any specified specified domestic entity (see Report the total maximum value of
foreign financial assets in which you Specified Domestic Entity, earlier), these deposit accounts.
have an interest without regard to the enter the entity’s employer
reporting threshold that applies to you identification number (EIN). Line 7
and regardless of any exception from Report the number of custodial
Line 3
reporting a specified foreign financial accounts reported in all Parts V.
asset on Form 8938. Indicate the type of filer by checking
the applicable box on line 3. If you are Line 8
a specified individual (see Specified Report the total maximum value of
Specific Instructions Individual, earlier), check box 3a. In these custodial accounts.
Before you begin. If you are a the case of a specified domestic entity
Line 9
specified individual and report all of (see Specified Domestic Entity,
your specified foreign financial assets earlier), check the applicable box for Indicate whether any foreign deposit
on a timely filed Form 3520, 3520-A, partnership (3b), corporation (3c), or or custodial accounts were closed
5471, 8621, or 8865, you do not have trust (3d). during the tax year.
to report them on Form 8938. Instead,
Line 4
enter your name(s) and taxpayer Part II. Other Foreign
identification number (TIN) at the top If you checked box 3a (specified Assets Summary
of the form and complete Part IV only. individual), do not complete this line 4. Use Part II to summarize information
If you are a specified individual or a If you checked box 3b (partnership) or regarding financial accounts (other
specified domestic entity and report 3c (corporation), enter the name and than foreign deposit and custodial
only a part of your specified foreign TIN of the specified individual (see accounts) and other specified foreign
financial assets on one or more of Specified Individual, earlier) who financial assets reported in all Parts
these forms, report the remaining closely holds the partnership or VI.
assets on Form 8938 and complete corporation. If you checked box 3d
Part IV. (trust), enter the name and TIN of the Line 10
specified person (see Specified Report the number of accounts and
Additional statements. If you have Person, earlier) who is a current assets reported in all Parts VI.
more than one account or asset to beneficiary of the trust.
report in Part V VIor , or more than Line 11
one issuer or counterparty to report in Note. If you are a paper filer and you Report the total maximum value of
Part VI, make additional copies of have more than one specified these accounts and assets.
page 2 of this form and attach them to individual or specified person, attach
your form. Check the box at the top of a statement listing the name and TIN Line 12
page 1 of the form to indicate that you of each such specified individual or Indicate whether any account was
are attaching additional statements, specified person. opened or closed or any asset was
acquired or disposed of during the tax
and enter the number of additional If you are a specified
year.
statements in the space provided. TIP individual (see Specified
Individual, earlier) for less
Period Covered Part III. Summary of Tax
than the entire tax year, you only have
For filing calendar year and fiscal year to report the information for the part of Items Attributable to
returns, fill in the tax year of the the year that you are a specified Specified Foreign
specified individual or specified individual. Financial Assets
domestic entity for whom you are
Enter the following items for your total
furnishing information in the space at
the top of the form. Part I. Foreign Deposit and assets reported in Part V or Part VI
and the schedule, form, or return on
Custodial Accounts
which you reported the items.
Identifying Information Summary Interest.
•
Lines 1 and 2 Use Part I to summarize information • Dividends.
regarding foreign deposit and
Enter your name(s) and TIN as shown • Royalties.
custodial accounts reported in all
on the annual return you are filing with • Other income.
Parts V.
Form 8938. If you are a specified • Gains or (losses).
individual (see Specified Individual, Line 5 • Deductions.
earlier), enter the first TIN shown on Report the number of deposit • Credits.
your income tax return. A TIN is a accounts reported in all Parts V.
social security number (SSN) or
individual taxpayer identification
-12- Instructions for Form 8938 (Rev. 11-2021)

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Part IV. Excepted Lines 20 Through 28 Other Joint Owners
Specified Foreign Enter the following information for Report the maximum value of the
each foreign deposit or custodial
Financial Assets entire jointly held account on your
account. Form 8938 filed with your income tax
If you reported a specified foreign
return, regardless of the value of your
financial asset on certain other forms Line 20
separate interest in the account.
listed below for the same tax year, you Check the box to indicate if this is a
may not have to report it on Form depository or a custodial account. Lines 24 and 25
8938. However, you must identify the If you used a foreign currency
form where you reported the asset by Line 21
exchange rate to convert the value of
indicating how many forms you filed. Enter the account number of the the account into U.S. dollars, check
account or other specific identifying
For more information, see the “Yes” box on line 24 and go to
information for the account if there is
Duplicative Reporting, earlier. If you line 25. Otherwise, check the “No” box
no account number.
reported a specified foreign financial and go to line 26.
asset on one or more of the following Line 22 Line 25
forms, enter the number of forms filed. Check one or more boxes to indicate If you answered “Yes” on line 24,
• Form 3520. if any of the following applies. enter the following information.
• Form 3520-A. • The account was opened during the
• Form 5471. tax year. 1. The foreign currency in which
• Form 8621. • The account was closed during the the account is maintained.
• Form 8865. tax year. 2. The foreign currency exchange
Foreign Grantor Trusts • The account was jointly owned with rate used to convert the value of the
your spouse. account into U.S. dollars.
If you are treated as an owner of any
• You did not report any tax item in 3. If the U.S. Treasury Bureau of
part of a foreign grantor trust, you may
Part III for this asset. the Fiscal Service did not provide an
have to file Form 8938 to report
exchange rate, the source of the
specified foreign financial assets held Line 23
foreign currency exchange rate that
by the trust. If you are a beneficiary of Enter the maximum value of the you used.
the foreign trust, you may have to file account during the tax year.
Form 8938 to report your interest in You must use the foreign
the trust. You do not have to report on See Reporting Maximum
currency exchange rate on
Form 8938 any specified foreign TIP Value, earlier, for information CAUTION! the last day of the tax year,
financial asset held by the trust or on determining the maximum
even if you closed or disposed of the
your interest in the trust if you report value of the account.
account before the last day of the tax
the trust on a Form 3520, you timely year.
Joint Interests in Foreign
file for the tax year, and the trust
timely files Form 3520-A for the tax Deposit and Custodial Line 26a
year. Accounts Enter the name of the financial
Use the following rules to determine institution in which the account is
Part V. Detailed the maximum value to report. maintained.
Information for Each
Line 26b
Foreign Deposit and Spouses Filing a Joint Return
If you have been furnished the Global
Custodial Account You and your spouse report the
Intermediary Identification Number
maximum value of an account held
Included in the Part I (GIIN) associated with the financial
jointly by you and your spouse only
account listed on line 26a, enter it
Summary once on the single Form 8938 filed
here.
Use Part V to report information for with your joint income tax return.
foreign deposit and custodial If you haven't been provided a GIIN
accounts. If you have more than one Spouses Filing Separate Returns by your financial institution, you can
account, attach an additional look it up by using the FATCA Foreign
You and your spouse each report the
statement with the required Financial Institution (FFI) List Search
maximum value of an account held
information for each additional and Download tool. You can access
jointly by you and your spouse on your
account and check the box at the top the tool at IRS.gov/Businesses/
separate Forms 8938 filed with your
of page 1 of the form. Corporations/FATCA-Foreign-
separate income tax returns.
Financial-Institution-List-Search-and-
Download-Tool.

Instructions for Form 8938 (Rev. 11-2021) -13-

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If your search returns multiple Line 30 asset held jointly by you and your
instances of the same name for the Enter the identifying number or other spouse on your separate Forms 8938
financial institution, use the one that information identifying the account or filed with your separate income tax
most closely matches the information asset. returns.
that you have. You will not be subject
to penalties if you enter the wrong Line 31 Other Joint Owners
GIIN or leave this field blank. Enter the following information about Report the maximum value of the
Completing this information may the account or asset, if required. entire jointly held account or asset on
reduce the need for the IRS to contact 1. If the account was opened or your Form 8938 filed with your income
you. closed, or the asset was acquired or tax return, regardless of the value of
Lines 27 and 28 disposed of during the year, enter the your separate interest in the account
date of opening and/or closure, or
Enter the mailing address of the or asset.
acquisition and/or disposition, as
financial institution in which the Lines 33 and 34
applicable. If the assets were
account is maintained. If you used a foreign currency
acquired or disposed of during
different dates in the year, enter exchange rate to convert the value of
Part VI. Detailed the account or asset into U.S. dollars,
“Various.”
Information for Each check the “Yes” box on line 33 and go
2. If you own the account or asset
to line 34. Otherwise, check the “No”
"Other Foreign Asset" jointly with your spouse, check the
box and go to line 35.
Included in the Part II box on line 31c.
Summary 3. If you did not report any income, Line 34
Use Part VI to report information for gain, loss, deduction, or credit for this If you answered “Yes” on line 33,
financial accounts (other than foreign account or asset on your tax return or enter the following information.
deposit and custodial accounts) and any schedule or form attached to your 1. The foreign currency in which
other specified foreign financial assets income tax return filed for the tax year, the account or asset is denominated.
not held in a financial account. If you check the box on line 31d.
2. The foreign currency exchange
have more than one asset, attach an
additional statement with the required Line 32 rate used to convert the value of the
information for each additional asset Check the box for the value range that account or asset into U.S. dollars.
and check the box at the top of page 1 represents the maximum value of the 3. If the U.S. Treasury Bureau of
of the form. account or asset during the tax year. If the Fiscal Service did not provide an
the maximum value is more than exchange rate, the source of the
Lines 29 Through 36 $200,000, enter the maximum value foreign currency exchange rate that
Enter the following information for on line 32e. you used.
each financial account and specified
See Reporting Maximum You must use the foreign
foreign financial asset not held in a
TIP Value, earlier, for information currency exchange rate on
financial account reported in Part II. CAUTION!
on determining the maximum the last day of the tax year,
For examples of specified foreign
value of the account or asset. even if you closed the account or sold
financial assets not held in a financial
or disposed of the asset before the
account, see Other Specified Foreign
Joint Interest in Other Foreign last day of the tax year.
Financial Assets, earlier.
Assets
Line 29 Use the following rules to figure the Lines 35a Through 35e
Enter a description of the account or maximum value to report. If the account or asset you reported
asset. If the asset is stock or on line 29 is stock of a foreign entity or
securities, include the class or issue Spouses Filing a Joint Return an interest in a foreign entity,
of the stock or securities. complete lines 35a through 35e.
You and your spouse report the
Example 16. You own 100 shares maximum value of an account or Line 35a
of XYZ Company, an Italian S.A. A asset held jointly by you and your Enter the name of the foreign entity.
sufficient description is “100 Class A spouse only once on the single Form
shares of XYZ Company, S.A.” 8938 filed with your joint income tax Line 35b
Example 17. You own a bond return. If you have been furnished the GIIN
issued by AB GmbH, a German associated with the financial account
GmbH. A sufficient description is Spouses Filing Separate Returns or asset listed on line 29, enter it here.
“Bond of AB GmbH, maturing on You and your spouse each report the If you haven't been provided a GIIN
December 31, 2019.” maximum value of an account or by your financial institution, you can
look it up by using the FATCA Foreign
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Financial Institution (FFI) List Search Line 36a OMB control number. Books or
and Download tool. You can access Enter the name of the issuer or records relating to a form or its
the tool at IRS.gov/Businesses/ counterparty and check the instructions must be retained as long
Corporations/FATCA-Foreign- appropriate box to indicate if you are as their contents may become
Financial-Institution-List-Search-and- reporting for an issuer or a material in the administration of any
Download-Tool. counterparty. Internal Revenue law. Generally, tax
If your search returns multiple returns and return information are
Line 36b
instances of the same name for your confidential, as required by section
financial institution, use the one that Check the appropriate box to indicate 6103.
most closely matches the information the type of issuer or counterparty.
The time needed to complete and
that you have. You will not be subject Line 36c file this form will vary depending on
to penalties if you enter the wrong individual circumstances. The
Check the box to indicate if the issuer
GIIN or leave this field blank. estimated burden for business
or counterparty is a U.S. person or a
Completing this information may taxpayers filing this form is approved
foreign person.
reduce the need for the IRS to contact under OMB control number
you. Lines 36d and 36e 1545-0123. The estimated burden for
Line 35c Enter the mailing address of the issuer all other taxpayers who file this form is
or counterparty. If the issuer or
Check the box on line 35c to indicate shown below.
counterparty has a mailing address in
the type of foreign entity.
the United States, you can enter the Learning about
Lines 35d and 35e U.S. mailing address. the law or the
Enter the mailing address of the form. . . . . . . . . . 57 min.
foreign entity. Paperwork Reduction Act Notice. Preparing the
We ask for the information on this form. . . . . . . . . . 2 hr., 57 min.
Lines 36a Through 36e form to carry out the Internal Revenue Copying,
If the account or asset you reported laws of the United States. Section assembling,
on line 29 is not stock of a foreign 6038D requires specified individuals and sending the
entity or an interest in a foreign entity, and specified domestic entities to form to the IRS. . 48 min.
complete lines 36a through 36e. report specified foreign financial
assets in which they have an interest.
Note. If this account or asset has Form 8938 is used to comply with this If you have comments concerning
more than one issuer or counterparty, reporting requirement. the accuracy of these time estimates
copy page 2 as many times as or suggestions for making this form
needed and complete a separate You are not required to provide the simpler, we would be happy to hear
line 36 for each issuer or information requested on a form that from you. See the instructions for the
counterparty. Check the box at the top is subject to the Paperwork Reduction tax return with which this form is filed.
of page 1 of the form. Act unless the form displays a valid

Instructions for Form 8938 (Rev. 11-2021) -15-

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Index
 
                              Foreign Grantor 
A                             Trusts    10            S                           V
Additional Statements 12                              Special Rules   5           Valuing:
Assets Not Required To Be                             Specified Person  1          Valuing Financial 
  Reported 9                I                             Excepted Specified       Accounts     9
                            Interests in Specified        Domestic Entities    3   Valuing Interests in 
                              Foreign Financial           Passive Income  2        Foreign Estates, 
C                             Assets  7                   Specified Domestic       Foreign Pension 
Closely Held Domestic                                     Entity    2              Plans, and Foreign 
  Corporation 2                                           Specified Individual 2   Deferred 
Closely Held Domestic       P                                                      Compensation 
  Partnership 2             Passive Income 2                                       Plans  9
Constructive Ownership  2   Penalties 11              T                            Valuing Interests in 
                              Accuracy-Related        Types of Reporting           Foreign Trusts                        9
                              Penalty    11               Thresholds  4            Valuing Other Specified 
D                             Criminal Penalties   11     Reporting Thresholds     Foreign Financial 
Determining the Total Value   Failure-To-File             Applying to Specified    Assets 9
  of Your Specified           Penalty    11               Domestic Entities    4
  Foreign Financial           Fraud 11                    Reporting Thresholds 
  Assets 4                                                Applying to Specified   W
  Asset With No Positive                                  Individuals   4         When and How To File                    1
  Value  5                  R                         Types of Specified Foreign  Who Must File 1
                            Reporting Maximum             Financial Assets 7
                              Value 8                     Financial Account 7
E                             Foreign Currency            Foreign Financial 
Excepted Specified            Conversion      8           Institution 7
  Domestic Entities 3       Reporting Period  8           Other Specified Foreign 
Exceptions To                                             Financial Assets     7
  Reporting 10
  Duplicative Reporting 10

                                                      -16-

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