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Department of the Treasury
Internal Revenue Service
2020

Instructions for Form 8938

Statement of Specified Foreign Financial Assets

Section references are to the Internal Revenue assets is more than the applicable
Code unless otherwise noted. General Instructions reporting threshold.
If you are required to file Form 8938,
Future Developments Purpose of Form you must report the specified foreign
For the latest information about Use Form 8938 to report your specified financial assets in which you have an
developments related to Form 8938 and foreign financial assets if the total value interest even if none of the assets
its instructions, such as legislation of all the specified foreign financial affects your tax liability for the year. See
enacted after they were published, go to assets in which you have an interest is Specified Individual Specified Domestic ,
IRS.gov/Form8938. more than the appropriate reporting Entity, and Types of Reporting
threshold. See Types of Reporting Thresholds, later.
What’s New Thresholds, later.
Exception if no income tax
Rev. Proc. 2020-17, available at Filing Form 8938 does not TIP return required. If you do not
IRS.gov/pub/irs-drop/rp-20-17.pdf, ! relieve you of the requirement to have to file an income tax return
exempts foreign trust information CAUTION file FinCEN Form 114, Report of
for the tax year, you do not have to file
reporting requirements on Forms 3520 Foreign Bank and Financial Accounts Form 8938, even if the value of your
and 3520-A, for certain U.S. individuals’ (FBAR), if you are otherwise required to specified foreign financial assets is
transactions with, and ownership of, file the FBAR. See FinCEN Form 114 more than the appropriate reporting
certain tax-favored foreign trusts that and its instructions for FBAR filing threshold.
are established and operated requirements. Go to IRS.gov/
exclusively or almost exclusively to Businesses/Comparison-of-Form-8938- Specified Person
provide pension or retirement benefits, and-FBAR-Requirements for a chart
or to provide medical disability or comparing Form 8938 and FBAR filing A specified person is either a specified
educational benefits. This does not requirements. individual or a specified domestic entity,
defined later.
affect any reporting obligations under
section 6038D. For more information
When and How To File
about section 6038D information Specified Individual
reporting, see IRS.gov/Businesses/ Attach Form 8938 to your annual return
You are a specified individual if you are
Corporations/Basic-Questions-and- and file by the due date (including
one of the following.
Answers-on-Form-8938. extensions) for that return.
• A U.S. citizen.
An annual return includes the • A resident alien of the United States
Reminders following returns. for any part of the tax year (but see
Specified domestic entity reporting. • Form 1040. Reporting Period, later).
Certain domestic corporations, • Form 1040-NR. • A nonresident alien who makes an
partnerships, and trusts that are • Form 1040-SR. election to be treated as a resident alien
considered formed or availed of for the • Form 1041. for purposes of filing a joint income tax
purpose of holding, directly or indirectly, • Form 1041-N. return.
specified foreign financial assets • Form 1065. • A nonresident alien who is a bona
(specified domestic entities) must file • Form 1120. fide resident of American Samoa or
Puerto Rico. See Pub. 570, Tax Guide
Form 8938 if the total value of those A reference to an “annual return” or for Individuals With Income From U.S.
assets exceeds $50,000 on the last day “income tax return” in the instructions Possessions, for a definition of bona
of the tax year or $75,000 at any time includes a reference to any return listed fide resident.
during the tax year. here, whether it is an income tax return
For more information on domestic or an information return. Resident aliens. You are a resident
alien if you are treated as a resident
corporations, partnerships, and trusts Do not send a Form 8938 to the alien for U.S. tax purposes under the
that are specified domestic entities and ! IRS unless it is attached to an green card test or the substantial
must file Form 8938, and the types of CAUTION annual return or an amended
presence test. For more information,
specified foreign financial assets that return. see Pub. 519, U.S. Tax Guide for
must be reported, see Who Must File,
Specified Domestic Entity Specified , Aliens. If you qualify as a resident alien
Foreign Financial Assets Interests in , Who Must File under either rule, you are a specified
Specified Foreign Financial Assets, and Unless an exception applies, you must individual.
Assets Not Required To Be Reported, file Form 8938 if you are a specified Special rule for dual resident taxpay-
later. person (see Specified Person, later) that ers. If you are a dual resident taxpayer
has an interest in specified foreign (within the meaning of Regulations
financial assets and the value of those section 301.7701(b)-7(a)(1)), who
determines his or her income tax liability

Oct 23, 2020 Cat. No. 55389W

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for all or a part of the tax year as if he or year, a specified individual directly,      Exception from passive income 
she were a nonresident alien as               indirectly, or constructively owns at least treatment for dealers.  In the case of a 
provided by Regulations section               80% of the total combined voting power      domestic corporation or partnership 
301.7701(b)-7, file Form 8938 as              of all classes of stock of the corporation  regularly acting as a dealer in property 
follows.                                      entitled to vote or at least 80% of the     described in Regulations section 
                                              total value of the stock of the             1.6038D-6(b)(3)(i)(F), forward 
  Specified individual filing as a            corporation.                                contracts, options contracts, or similar 
nonresident alien at the end of his or 
her tax year.  You are not required to        Closely held domestic partnership.          financial instruments (including notional 
report specified foreign financial assets     A domestic partnership is closely held if,  principal contracts and all instruments 
on Form 8938 for the part of your tax         on the last day of the partnership’s tax    referenced to commodities), passive 
year covered by Form 1040-NR,                 year, a specified individual directly,      income does not include the following.
provided you comply with the filing           indirectly, or constructively holds at      1. Any item of income or gain (other 
requirements of Regulations section           least 80% of the capital or profits         than any dividends or interest) from any 
301.7701(b)-7(b) and (c), including the       interest in the partnership.                transaction (including hedging 
requirement to timely file Form               Constructive ownership.      Sections       transactions and transactions involving 
1040-NR, as applicable, and attach            267(c) and (e)(3) apply for purposes of     physical settlement) entered into in the 
Form 8833, Treaty-Based Return                determining a specified individual’s        ordinary course of such dealer’s trade or 
Position Disclosure Under Section 6114        constructive ownership in a domestic        business as such a dealer.
or 7701(b).                                   corporation or partnership, except that     2. In the case of a corporation or 
  Specified individual filing as a            section 267(c)(4) is applied as if the      partnership that is a dealer in securities 
resident alien at the end of his or her       family of an individual includes the        (within the meaning of section 475(c)
tax year.  You are not required to            spouses of the specified individual’s       (2)), any income from any transaction 
report specified foreign financial assets     family members.                             entered into in the ordinary course of the 
                                                                                          corporation’s or partnership’s trade or 
on Form 8938 for the part of your tax         Passive income. Passive income              business as a dealer in securities.
year reflected on the schedule to Form        means the part of gross income that 
1040 or 1040-SR required by                   consists of:                                Passive income or assets of related 
Regulations section 1.6012-1(b)(2)(ii)        • Dividends, including substitute           corporations and partnerships.        For 
(a), provided you comply with the filing      dividends;                                  purposes of determining whether a 
requirements of Regulations section           • Interest;                                 domestic corporation or partnership 
1.6012-1(b)(2)(ii)(a), including the          • Income equivalent to interest,            meets the passive income or asset test, 
requirement to timely file Form 1040 or       including substitute interest;              domestic corporations and domestic 
1040-SR and attach a properly                 • Rents and royalties, other than rents     partnerships that are closely held by the 
completed Form 8833.                          and royalties derived in the active         same specified individual and that are 
                                              conduct of a trade or business              connected through stock or partnership 
Specified Domestic Entity                     conducted, at least in part, by             ownership with a common parent 
You are a specified domestic entity if        employees of the corporation or             corporation or partnership are treated as 
you are one of the following.                 partnership;                                owning the combined assets and 
• A closely held domestic corporation         • Annuities;                                receiving the combined income of all 
that has at least 50% of its gross income     • The excess of gains over losses from      members of that group. For this 
from passive income.                          the sale or exchange of property            purpose, any contract, equity, or debt 
• A closely held domestic corporation if      described in Regulations section            existing between members of the group, 
at least 50% of its assets produce or are     1.6038D-6(b)(3)(i)(F) and that gives rise   as well as any items of gross income 
held for the production of passive            to the types of passive income listed       arising from that contract, equity, or 
income (see Passive income and                above;                                      debt, is eliminated.
Percentage of passive assets held by a        • The excess of gains over losses from 
corporation or partnership, later).           transactions (including futures,            Connected stock or partnership 
• A closely held domestic partnership         forwards, and similar transactions) in      ownership. A domestic corporation or 
that has at least 50% of its gross income     any commodity, but not including:           partnership is considered connected 
                                                                                          through stock or partnership interest 
from passive income.                            1. Any commodity hedging 
                                                                                          ownership with a common parent 
• A closely held domestic partnership if      transaction described in section 954(c)
                                                                                          corporation or partnership in the 
at least 50% of its assets produce or are     (5)(A), or
                                                                                          following circumstances.
held for the production of passive              2. Active business gains or losses 
                                                                                          1. Stock representing at least 80% 
income (see Passive income and                from the sale of commodities, but only if 
                                                                                          of the total combined voting power of all 
Percentage of passive assets held by a        substantially all the corporation’s or 
                                                                                          classes of stock of the corporation 
corporation or partnership, later).           partnership’s commodities are property 
                                                                                          entitled to vote or of the value of such 
• A domestic trust described in section       described in paragraph (1), (2), or (8) of 
                                                                                          corporation, other than stock of the 
7701(a)(30)(E) that has one or more           section 1221(a);
                                                                                          common parent, is owned by one or 
specified persons (a specified individual     • The excess of foreign currency gains 
                                                                                          more of the other connected 
or a specified domestic entity) as a          over foreign currency losses (as defined 
                                                                                          corporations, connected partnerships, 
current beneficiary.                          in section 988(b)) attributable to any 
                                                                                          or the common parent.
Closely held domestic corporation.            section 988 transaction; and
A domestic corporation is closely held if,    • Net income from notional principal        2. Partnership interests 
on the last day of the corporation’s tax      contracts.                                  representing at least 80% of the profits 
                                                                                          interests or capital interests of the 

                                                              -2-                         Instructions for Form 8938 (2020)

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partnership, other than partnership Domestic trusts. A trust described in 3. The trustee files annual returns
interests in the common parent, is section 7701(a)(30)(E) is considered a and information returns by the due date
owned by one or more of the other specified domestic entity if and only if (including any applicable extensions) on
connected corporations, connected the trust has one or more specified behalf of the trust.
partnerships, or the common parent. persons (a specified individual or a
specified domestic entity) as a current Domestic trusts owned by one or
Percentage of passive assets held beneficiary for the tax year. more specified persons. A trust
by a corporation or partnership. For described in section 7701(a)(30)(E) to
purposes of determining whether at Current beneficiary. With respect the extent the trust or any part of the
least 50% of your assets produce or are to a tax year, a current beneficiary is any trust is treated as owned by one or more
held for the production of passive person who at any time during the tax specified persons under sections 671
income, the percentage of passive year is entitled to, or at the discretion of through 678 and the regulations.
assets held by the corporation or any person may receive, a distribution
partnership for a tax year is the from the principal or income of the trust Types of Reporting Thresholds
weighted average percentage of (determined without regard to any Reporting Thresholds Applying to
passive assets (weighted by total assets power of appointment to the extent that Specified Individuals
and measured quarterly). The value of such power remains unexercised at the
assets of the corporation or partnership end of the tax year). If you are a specified individual, your
is the fair market value or the book applicable reporting threshold depends
Special rule for general powers of
value. The book value of assets is the upon whether you are married, file a
appointment. A current beneficiary
amount reflected on the corporation’s or joint federal income tax return, and live
also includes any holder of a general
partnership’s balance sheet and may be inside (or outside) the United States.
power of appointment, whether or not
determined under either a U.S. or an exercised, that was exercisable at any Taxpayers living in the United
international financial accounting time during the tax year. A holder of a States. If you do not live outside the
standard. See Example 1 below, which United States, you satisfy the reporting
general power of appointment that is
illustrates the application of this threshold discussed next that applies to
exercisable only on the death of the
weighted average asset rule. you, and no exception applies, file Form
holder is not a current beneficiary.
Example 1. Application of the 8938 with your income tax return.
weighted average asset rule. The Excepted Specified Domestic Unmarried taxpayers. If you are
following example illustrates the not married, you satisfy the reporting
application of the weighted average Entities
threshold only if the total value of your
asset rule. Entities described in section specified foreign financial assets is
1473(3). An entity described in section more than $50,000 on the last day of the
DC is a domestic corporation, the total value of 1473(3) and the regulations thereunder, tax year or more than $75,000 at any
the stock of which is owned by L, a specified with the exception of a trust that is time during the tax year.
individual. DC is a calendar year taxpayer. exempt from tax under section 664(c), is
Less than 50% of DC’s gross income for its tax not a specified domestic entity. Married taxpayers filing a joint
year beginning January 1, 2020, is passive income tax return. If you are married
income. DC has the following assets in 2020, Certain domestic trust. A trust and you and your spouse file a joint
measured quarterly: described in section 7701(a)(30)(E) is income tax return, you satisfy the
not considered a specified domestic reporting threshold only if the total value
entity, provided that all of the following of your specified foreign financial assets
Passive Assets Total Assets apply. is more than $100,000 on the last day of
Q1 $150 $200 1. The trustee is one of the the tax year or more than $150,000 at
Q2 $150 $300 following. any time during the tax year.
a. A bank that is examined by the
Q3 $300 $500 Married taxpayers filing separate
Office of the Comptroller of the income tax returns. If you are married
Q4 $200 $1,000 Currency, the Board of Governors of the and file a separate income tax return
Tax Year Federal Reserve System, the Federal from your spouse, you satisfy the
Totals $800 $2,000 Deposit Insurance Corporation, or the reporting threshold only if the total value
National Credit Union Administration; of your specified foreign financial assets
b. A financial institution that is is more than $50,000 on the last day of
registered with and regulated or the tax year or more than $75,000 at
DC’s weighted passive asset percentage for examined by the Securities and any time during the tax year.
tax year 2020 is 40%, that is, DC’s total passive Exchange Commission; or Taxpayers living outside the United
assets divided by its total assets ($800 / $2,000
= 40%). Because fewer than 50% of DC’s c. A domestic corporation described States. If your tax home is in a foreign
assets produce or are held for the production of in section 1473(3)(A) or (B), and the country, you meet one of the presence
passive income and less than 50% of DC’s regulations issued with respect to those abroad tests described next, and no
gross income for its tax year is passive income, provisions. exception applies, file Form 8938 with
DC does not meet the passive asset or passive
income threshold and would not be a specified 2. The trustee has supervisory your income tax return if you satisfy the
domestic entity. authority over or fiduciary obligations reporting threshold discussed next that
with regard to the specified foreign applies to you.
financial assets held by the trust. Unmarried taxpayers. If you are
not married, you satisfy the reporting

Instructions for Form 8938 (2020) -3-

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threshold only if the total value of your   total value of specified foreign financial Joint Interest Valuation
specified foreign financial assets is       assets in which you have an interest 
                                                                                       If you jointly own an asset with someone 
more than $200,000 on the last day of       during the tax year or on the last day of 
                                                                                       else, the value that you use to 
the tax year or more than $300,000 at       the tax year is the asset's fair market 
                                                                                       determine the total value of all of your 
any time during the tax year.               value. For purposes of figuring the total 
                                                                                       specified foreign financial assets 
                                            value of specified foreign financial 
                                                                                       depends on whether the other owner is 
  Married taxpayers filing a joint          assets, the value of a specified foreign 
                                                                                       your spouse and, if so, whether your 
income tax return.   If you are married     financial asset denominated in a foreign 
                                                                                       spouse is a specified individual and 
and you and your spouse file a joint        currency must first be determined in the 
                                                                                       whether you file a joint or separate 
income tax return, you satisfy the          foreign currency and then converted to 
                                                                                       return.
reporting threshold only if the total value U.S. dollars. See Foreign Currency 
of your specified foreign financial assets  Conversion, later, for rules on            Joint ownership with spouse filing 
is more than $400,000 on the last day of    determining and applying the               joint income tax return. If you and 
the tax year or more than $600,000 at       appropriate foreign currency exchange      your spouse file a joint income tax return 
any time during the tax year.               rate.                                      and, therefore, would file one combined 
  Married taxpayers filing separate                                                    Form 8938 for the tax year, include the 
income tax returns.  If you are married     Value of an Interest in a Foreign          value of the asset jointly owned with 
                                                                                       your spouse only once to determine the 
and file a separate income tax return       Trust During the Tax Year
from your spouse, you satisfy the                                                      total value of all of the specified foreign 
reporting threshold only if the total value If you do not know or have reason to       financial assets you and your spouse 
of your specified foreign financial assets  know based on readily accessible           own.
is more than $200,000 on the last day of    information the fair market value of your 
the tax year or more than $300,000 at       interest in a foreign trust during the tax Joint ownership with spouse filing 
any time during the tax year.               year, the value to be included in          separate income tax return.       If you 
                                            determining the total value of your        and your spouse are specified 
  Presence abroad.   You satisfy the        specified foreign financial assets during  individuals and you each file a separate 
presence abroad test if you are one of      the tax year is the maximum value of       annual return, include one-half of the 
the following.                              your interest in the foreign trust. See    value of the asset jointly owned with 
• A U.S. citizen who has been a bona        Valuing Interests in Foreign Trusts,       your spouse to determine the total value 
fide resident of a foreign country or       later, for rules on determining the        of all of your specified foreign financial 
countries for an uninterrupted period       maximum value of an interest in a          assets.
that includes an entire tax year.           foreign trust.                             Joint ownership with a spouse who 
• A U.S. citizen or resident who is                                                    is not a specified individual or some-
present in a foreign country or countries   Value of an Interest in a Foreign          one other than a spouse. Each joint 
at least 330 full days during any period                                               owner includes the entire value of the 
of 12 consecutive months that ends in       Estate, Foreign Pension Plan, and 
                                                                                       jointly owned asset to determine the 
the tax year being reported.                Foreign Deferred Compensation              total value of all of that joint owner's 
                                            Plan                                       specified foreign financial assets.
Reporting Thresholds Applying to            If you do not know or have reason to       Special Rules
Specified Domestic Entities                 know based on readily accessible 
                                            information the fair market value of your  Assets Reported on Another Form
If you are a specified domestic entity,     interest in a foreign estate, foreign 
                                                                                       Specified individual. If you are a 
you satisfy the reporting threshold only if pension plan, or foreign deferred 
                                                                                       specified individual, include the value of 
the total value of your specified foreign   compensation plan during the tax year, 
                                                                                       all specified foreign financial assets, 
financial assets is more than $50,000 on    the value to be included in determining 
                                                                                       even if they are reported on another 
the last day of the tax year or more than   the total value of your specified foreign 
                                                                                       form listed in Part IV to determine if you 
$75,000 at any time during the tax year.    financial assets during the tax year is 
                                                                                       satisfy the reporting threshold that 
Determining the Total Value of              the fair market value, determined as of 
                                                                                       applies to you. See Part IV. Excepted 
                                            the last day of the tax year, of the 
Your Specified Foreign                                                                 Specified Foreign Financial Assets, 
                                            currency and other property distributed 
                                                                                       later.
Financial Assets                            during the tax year to you. If you 
You must figure the total value of the      received no distributions during the tax   Specified domestic entity. If you are 
specified foreign financial assets in       year and do not know or have reason to     a specified domestic entity, exclude the 
which you have an interest to determine     know based on readily accessible           value of any specified foreign financial 
if you satisfy the reporting threshold that information the fair market value of your  asset reported on another form listed in 
applies to you. To determine if you have    interest, use a value of zero for the      Part IV to determine if you satisfy the 
an interest in a specified foreign          interest.                                  applicable reporting threshold.
financial asset, see Interests in 
Specified Foreign Financial Assets,         Asset With No Positive Value               Bona Fide Resident of a U.S. 
later.
                                            If the maximum value of a specified        Possession
                                            foreign financial asset is less than zero, Do not include the value of specified 
Valuing Specified Foreign                   use a value of zero for the asset.         foreign financial assets you are not 
Financial Assets                                                                       required to report because you are a 
The value of a specified foreign financial                                             bona fide resident of a U.S. possession. 
asset for purposes of determining the                                                  See Bona Fide Resident of a U.S. 

                                                              -4-                            Instructions for Form 8938 (2020)

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Possession under Assets Not Required threshold of more than $50,000 on the foreign financial assets that you each
To Be Reported, later. last day of the tax year. own. Neither of you satisfies the
Example 5. I am not married and reporting threshold of more than
Owners of Certain Domestic Tursts do not live abroad. I own an entity $50,000 on the last day of the tax year
Do not include the value of specified disregarded for tax purposes, which or more than $75,000 at any time during
foreign financial assets you are not owns one specified foreign financial the tax year.
required to report because you are an asset valued at $30,000. In addition, Example 9. My spouse and I file
owner of a domestic widely held fixed I own a specified foreign financial separate income tax returns, jointly
investment trust or a domestic asset valued at $25,000. You have to and individually own specified
liquidating trust created under chapter 7 file Form 8938. You own both the foreign financial assets, and do not
or chapter 11 of the Bankruptcy Code. specified foreign financial asset owned live abroad. On the last day of the
See Domestic Investment Trusts and by the disregarded entity and the tax year, my spouse and I jointly
Domestic Bankruptcy Trusts, later. specified foreign financial asset you own a specified foreign financial
own directly, for a total value of asset with a value of $90,000. My
$55,000. You satisfy the reporting spouse has a separate interest in a
Related Domestic Corporations
threshold of more than $50,000 on the specified foreign financial asset with
and Partnerships last day of the tax year. a value of $10,000. I have a separate
To determine if you satisfy the Example 6. My spouse and I do interest in a specified foreign
applicable reporting threshold, a not live abroad and file a joint financial asset with a value of
specified domestic entity that is a income tax return. We jointly own a $1,000. You do not have to file Form
corporation or partnership and that has single specified foreign financial 8938 but your spouse does. Your
an interest in any specified foreign asset valued at $60,000. You and spouse has an interest in specified
financial asset is treated as owning all your spouse do not have to file Form foreign financial assets in the amount of
specified foreign financial assets held 8938. You do not satisfy the reporting $55,000 on the last day of the tax year.
by all related corporations or threshold of more than $100,000 on the This is one-half of the value of the asset
partnerships that are closely held by the last day of the tax year or more than that you jointly own, $45,000, plus the
same specified individual (excluding $150,000 at any time during the tax entire value of the asset that your
specified foreign financial assets that year. spouse separately owns, $10,000. You
are excluded from reporting under Part have an interest in specified foreign
IV of Form 8938 or because you are the Example 7. My spouse and I do financial assets in the amount of
owner of a domestic widely held fixed not live abroad, file a joint income $46,000 on the last day of the tax year.
investment trust or a domestic tax return, and jointly and This is one-half of the value of the asset
liquidating trust created under chapter 7 individually own specified foreign that you jointly own, $45,000, plus the
or chapter 11 of the Bankruptcy Code). financial assets. On the last day of entire value of the asset that you
the tax year, my spouse and I jointly separately own, $1,000. Your spouse
Examples 2 through 11 may help you own a specified foreign financial satisfies the reporting threshold of more
decide if you have to file Form 8938. asset with a value of $90,000. My than $50,000 on the last day of the tax
Example 2. I am not married and spouse has a separate interest in a year. You do not satisfy the reporting
do not live abroad. The total value of specified foreign financial asset with threshold of more than $50,000 on the
my specified foreign financial assets a value of $10,000. I have a separate last day of the tax year or more than
does not exceed $49,000 during the interest in a specified foreign $75,000 at any time during the tax year.
tax year. You do not have to file Form financial asset with a value of
8938. You do not satisfy the reporting $1,000. You and your spouse have to Example 10. My spouse and I are
threshold of more than $50,000 on the file a combined Form 8938. You and U.S. citizens but live abroad for the
last day of the tax year or more than your spouse have an interest in entire tax year and file a joint income
$75,000 at any time during the tax year. specified foreign financial assets in the tax return. The total value of our
amount of $101,000 on the last day of combined specified foreign financial
Example 3. I am not married and the tax year. This is the entire value of assets on any day of the tax year is
do not live abroad. I sold my only the specified foreign financial asset that $150,000. You and your spouse do not
specified foreign financial asset on you jointly own, $90,000, plus the value have to file Form 8938. You do not
October 15, when its value was of the asset that your spouse separately satisfy the reporting threshold of more
$125,000. You have to file Form 8938. owns, $10,000, plus the value of the than $400,000 on the last day of the tax
You satisfy the reporting threshold even asset that you separately own, $1,000. year or more than $600,000 at any time
though you do not hold any specified You and your spouse satisfy the during the tax year for married
foreign financial assets on the last day reporting threshold of more than individuals who live abroad and file a
of the tax year because you did own $100,000 on the last day of the tax year. joint income tax return.
specified foreign financial assets of Example 11. My spouse and I live
more than $75,000 at any time during Example 8. My spouse and I do
the tax year. not live abroad, file separate income abroad and file separate income tax
tax returns, and jointly own a returns. My spouse is not a specified
Example 4. I am not married and specified foreign financial asset individual. On the last day of the tax
do not live abroad. An unrelated U.S. valued at $60,000 for the entire year. year, my spouse and I jointly own a
resident and I jointly own a specified Neither you nor your spouse has to file specified foreign financial asset with
foreign financial asset valued at Form 8938. You each use one-half of a value of $150,000. My spouse has
$60,000. You each have to file Form the value of the asset, $30,000, to a separate interest in a specified
8938. You each satisfy the reporting determine the total value of specified foreign financial asset with a value
of $10,000. I have a separate interest

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in a specified foreign financial asset Samoa, Guam, the Commonwealth of nonretirement savings accounts, and
with a value of $60,000. You have to the Northern Mariana Islands, Puerto accounts satisfying conditions similar to
file Form 8938 but your spouse, who is Rico, or the U.S. Virgin Islands). those described in Regulations section
not a specified individual, does not. You 1.1471-5(b)(2)(i) that are otherwise
Foreign financial institution. In most
have an interest in specified foreign excluded from the definition of a
cases, a foreign financial institution is
financial assets in the amount of financial account by an applicable
any financial institution that is not a U.S.
$210,000 on the last day of the tax year. Model 1 IGA or Model 2 IGA. Thus,
entity and satisfies one or more of the
This is the entire value of the asset that such accounts are subject to uniform
following.
you jointly own, $150,000, plus the reporting rules and must be reported
entire value of the asset that you • It accepts deposits in the ordinary
without regard to whether the account is
course of a banking or similar business.
separately own, $60,000. You satisfy maintained in a jurisdiction with an IGA.
the reporting threshold for a married • It holds financial assets for the
account of others as a substantial part
individual living abroad and filing a Interests in Specified Foreign
of its business.
separate return of more than $200,000 Financial Assets
on the last day of the tax year. • It is engaged (or holds itself out as
being engaged) primarily in the You have an interest in a specified
business of investing, reinvesting, or foreign financial asset if any income,
Specified Foreign trading in securities, partnership gains, losses, deductions, credits, gross
Financial Assets interests, commodities, or any interest proceeds, or distributions from holding
(including a futures or forward contract or disposing of the asset are or would
Types of Specified Foreign or option) in such securities, partnership be required to be reported, included, or
Financial Assets interests, or commodities. otherwise reflected on your income tax
Specified foreign financial assets return.
include the following assets. Other Specified Foreign Financial You have an interest in a specified
1. Financial accounts maintained by Assets foreign financial asset even if no
a foreign financial institution. income, gains, losses, deductions,
Examples of other specified foreign
2. The following foreign financial financial assets include the following, if credits, gross proceeds, or distributions
assets if they are held for investment they are held for investment and not from holding or disposing of the asset
and not held in an account maintained held in a financial account. are included or reflected on your income
by a financial institution. • Stock issued by a foreign corporation. tax return for this tax year.
a. Stock or securities issued by • A capital or profits interest in a foreign
someone that is not a U.S. person partnership. Interests in Property Transferred
(including stock or securities issued by • A note, bond, debenture, or other in Connection With the
a person organized under the laws of a form of indebtedness issued by a Performance of Services
U.S. possession). foreign person.
b. Any interest in a foreign entity. • An interest in a foreign trust or foreign You are first considered to have an
estate. interest in property transferred in
c. Any financial instrument or An interest rate swap, currency swap, connection with the performance of
•
contract that has an issuer or basis swap, interest rate cap, interest services on the first date that the
counterparty that is not a U.S. person rate floor, commodity swap, equity property is substantially vested (within
(including a financial contract issued by, swap, equity index swap, credit default the meaning of Regulations section
or with a counterparty that is, a person swap, or similar agreement with a 1.83-3(b)) or, if you have made a valid
organized under the laws of a U.S. foreign counterparty. section 83(b) election with respect to
possession). An option or other derivative the property, on the date of transfer of
•
For foreign financial assets excepted instrument with respect to any of these the property.
from reporting, see Assets Not Required examples or with respect to any
To Be Reported, later. currency or commodity that is entered Interests in Assets Held by
into with a foreign counterparty or Disregarded Entities
Financial Account issuer.
If you are the owner of a disregarded
A financial account is any depository or Assets held for investment. You hold entity, you have an interest in any
custodial account (under Regulations an asset, including a partnership specified foreign financial assets owned
section 1.1471-5(b)(1)(i) or (ii)) interest, for investment if you do not use by the disregarded entity.
maintained by a foreign financial it in, or hold it for use in, the conduct of
institution as well as any equity or debt any trade or business. Interests in Jointly Owned Assets
interest in a foreign financial institution Stock is not considered used or held
A joint owner of an asset has an interest
(other than interests that are regularly for use in the conduct of a trade or
in the entire asset. For special rules for
traded on an established securities business.
interests in assets jointly owned by
market) or any cash value life insurance If you are required to file Form spouses, see Joint Interest Valuation,
or annuity contract maintained by an ! 8938, in addition to reporting earlier, and Reporting the Value of
insurance company or other foreign CAUTION retirement and pension Jointly Owned Assets, later.
financial institution. A specified foreign accounts and nonretirement savings
financial asset includes a financial accounts described in Regulations
account maintained by a financial section 1.1471-5(b)(2)(i), you must
institution that is organized under the report retirement and pension accounts,
laws of a U.S. possession (American

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

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separate income tax returns, both you        stock’s maximum value during the tax         financial accounts maintained by U.S. 
and your spouse report any specified         year.                                        financial institutions include:
foreign financial asset that you jointly                                                  • U.S. mutual funds accounts,
own on your separate Forms 8938, and         Valuing Interests in Foreign                   IRAs (traditional or Roth),
                                                                                          •
both you and your spouse must include        Trusts                                       • Section 401(k) retirement accounts,
the maximum value of the entire asset        If you are a beneficiary of a foreign trust, • Qualified U.S. retirement plans, and
on your separate Forms 8938. You must        the maximum value of your interest in        • Brokerage accounts maintained by 
also report any specified foreign            the trust is the sum of the following        U.S. financial institutions.
financial asset that you own individually    amounts.                                       2. A financial account that is 
on your separate Form 8938 and               • The value of all of the cash or other      maintained by a dealer or trader in 
include the maximum value of the entire      property distributed during the tax year     securities or commodities if all of the 
asset. If you file Form 8814, you must       from the trust to you as a beneficiary.      holdings in the account are subject to 
report any specified foreign financial       • The value using the valuation tables       the mark-to-market accounting rules for 
asset your child owns and include the        under section 7520 of your right as a        dealers in securities or an election 
maximum value of the entire asset.           beneficiary to receive mandatory             under section 475(e) or (f) is made for 
                                             distributions as of the last day of the tax  all of the holdings in the account.
Other Joint Ownership                        year.
                                                                                          Certain Financial Assets
If you are a joint owner of a specified      Valuing Interests in Foreign 
                                                                                          You do not have to report any asset that 
foreign financial asset and you cannot       Estates, Foreign Pension Plans,              is not held in a financial account if the 
use one of the special rules for married 
                                             and Foreign Deferred 
individuals who file a joint tax return, you                                              asset is subject to the mark-to-market 
must report the specified foreign            Compensation Plans                           accounting rules for dealers in securities 
financial asset and include the              If you have an interest in a foreign         or commodities or an election under 
maximum value of the entire asset.           estate, foreign pension plan, or foreign     section 475(e) or (f) is made for the 
                                             deferred compensation plan, the              asset.
Valuing Financial Accounts                   maximum value of your interest is the        Foreign Social Security
You may rely on periodic account             fair market value of your beneficial 
                                                                                          An interest in a social security, social 
statements for the tax year to report a      interest in the assets of the estate, 
                                                                                          insurance, or other similar program of a 
financial account's maximum value            pension plan, or deferred compensation 
                                                                                          foreign government is not a specified 
unless you know or have reason to            plan as of the last day of the tax year. If 
                                                                                          foreign financial asset.
know based on readily accessible             you do not know or have reason to know 
information that the statements do not       based on readily accessible information      Exceptions To Reporting
reflect a reasonable estimate of the         the fair market value as of the last day of 
maximum account value during the tax         the tax year, the maximum value is the       Duplicative Reporting
year.                                        fair market value, determined as of the      You do not have to report any asset on 
                                             last day of the tax year, of the cash and    Form 8938 if you report it on one or 
Valuing Other Specified                                                                   more of the following forms that you 
                                             other property distributed during the tax 
Foreign Financial Assets                     year to you as a beneficiary or              timely file with the IRS for the same tax 
In most cases, you may use the value of      participant. If you received no              year.
a specified foreign financial asset that is  distributions during the tax year and do     • Form 3520, Annual Return To Report 
not a financial account and that is held     not know or have reason to know based        Transactions With Foreign Trusts and 
for investment and not held in an            on readily accessible information the fair   Receipt of Certain Foreign Gifts.
account maintained by a financial            market value of your interest as of the      • Form 5471, Information Return of 
institution as of the last day of the tax    last day of the tax year, use a value of     U.S. Persons With Respect to Certain 
year, unless you know or have reason to      zero as the maximum value of the asset.      Foreign Corporations.
know based on readily accessible                                                          • Form 8621, Information Return by a 
information that the value does not          Assets Not Required To                       Shareholder of a Passive Foreign 
reflect a reasonable estimate of the                                                      Investment Company or Qualified 
                                             Be Reported
maximum value of the asset during the                                                     Electing Fund.
tax year.                                    You are not required to report the             Form 8865, Return of U.S. Persons 
                                                                                          •
                                             following assets.
Example 15. I have publicly                                                               With Respect to Certain Foreign 
traded foreign stock not held in a           Certain Financial Accounts                   Partnerships.
financial account that has a fair            The following financial accounts and the       Instead, you must identify on Form 
market value as of the last day of the       assets held in such accounts are not         8938 the form(s) on which you report 
tax year of $100,000, although,              specified foreign financial assets and do    the specified foreign financial asset and 
based on daily price information that        not have to be reported on Form 8938.        how many of these forms you file. See 
is readily available, the 52-week high         1. A financial account that is             Part IV. Excepted Specified Foreign 
trading price for the stock results in       maintained by a U.S. payer, such as a        Financial Assets, later.
a maximum value of the stock during          domestic financial institution. In general, 
the tax year of $150,000. If you are         a U.S. payer also includes a domestic        Joint Form 5471 or Form 8865 
required to file Form 8938, the              branch of a foreign bank or foreign 
maximum value of the foreign stock to        insurance company and a foreign              Filers
be reported is $150,000, based on            branch or foreign subsidiary of a U.S.       If you are included as part of a joint 
readily available information of the         financial institution. Examples of           Form 5471 or Form 8865 filing and 
                                                                                          provide the notification required by 

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Regulations section 1.6038-2(i) or Mariana Islands, Puerto Rico, or the Married Taxpayers Filing a Joint
1.6038-3(c), you are considered to have U.S. Virgin Islands), do not include the Income Tax Return
filed that form for purposes of the value of the following assets to
requirement to report specified foreign determine if you satisfy the reporting If you are married and you and your
financial assets on Form 8938. See Part threshold that applies to you. If you are spouse file a joint income tax return, the
IV. Excepted Specified Foreign required to file Form 8938, you do not failure to file penalties apply as if you
Financial Assets, later. have to report the following specified and your spouse were a single person.
foreign financial assets on Form 8938. Your and your spouse’s liability for all
Foreign Grantor Trusts • A financial account maintained by a penalties is joint and several.
financial institution organized under the
If you are considered the owner under laws of the U.S. possession of which Presumption of Maximum Value
the grantor trust rules of any part of a you are a bona fide resident. If the IRS determines that you have an
•
foreign trust, you do not have to report A financial account maintained by a interest in one or more specified foreign
any of the specified foreign financial branch of a financial institution not financial assets and asks you for
assets held by the part of the trust you organized under the laws of the U.S. information about the value of any
are considered to own if you satisfy the possession of which you are a bona fide asset, but you do not provide enough
following conditions. resident, if the branch is subject to the information for the IRS to determine the
• You report the trust on a Form 3520 same tax and information reporting value of the asset, you are presumed to
that you timely file with the IRS for the requirements that apply to a financial own specified foreign financial assets
same tax year. institution organized under the laws of with a value of more than the reporting
• The trust timely files Form 3520-A, the U.S. possession of which you are a threshold that applies to you. See
Annual Information Return of Foreign bona fide resident. Determining the Total Value of Your
•
Trust With a U.S. Owner, with the IRS Stock or securities issued by an entity Specified Foreign Financial Assets,
for the same tax year. organized under the laws of the U.S. earlier. In such case, you are subject to
Instead, you must identify on Form possession of which you are a bona fide the failure-to-file penalties if you do not
8938 how many of these forms you file. resident. file Form 8938.
See Part IV. Excepted Specified Foreign • An interest in an entity organized
Financial Assets, later. under the laws of the U.S. possession of
which you are a bona fide resident. Reasonable Cause Exception
If you are a specified individual, • A financial instrument or contract held No penalty will be imposed if you fail to
! you must include the value of for investment, provided each issuer or file Form 8938 or to disclose one or
CAUTION the assets reported on Forms counterparty that is not a U.S. person is more specified foreign financial assets
3520, 3520-A, 5471, 8621, and 8865 in either an entity organized under the on Form 8938 and the failure is due to
determining whether you satisfy the laws of the U.S. possession of which reasonable cause and not to willful
reporting threshold that applies to you. you are a bona fide resident or a bona neglect. You must affirmatively show the
See Reporting Thresholds Applying to fide resident of the U.S. possession of facts that support a reasonable cause
Specified Individuals, earlier. which you are a bona fide resident. claim.
Domestic Investment Trusts Penalties The determination of whether a
failure to disclose a specified foreign
You may be subject to penalties if you
financial asset on Form 8938 was due to
If you are considered the owner under fail to timely file a correct Form 8938 or
reasonable cause and not due to willful
the grantor trust rules of any part of a if you have an understatement of tax
neglect will be determined on a
domestic widely held fixed investment relating to an undisclosed specified
case-by-case basis, taking into account
trust under Regulations section 1.671-5, foreign financial asset.
you do not have to report any specified all pertinent facts and circumstances.
foreign financial asset held by the part of Failure-To-File Penalty Effect of foreign jurisdiction laws.
the trust you are considered to own. If you are required to file Form 8938 but The fact that a foreign jurisdiction would
do not file a complete and correct Form impose a civil or criminal penalty on you
Domestic Bankruptcy Trusts 8938 by the due date (including if you disclose the required information
extensions), you may be subject to a
If you are considered the owner under is not reasonable cause.
penalty of $10,000.
the grantor trust rules of any part of a Accuracy-Related Penalty
domestic liquidating trust under
Regulations section 301.7701-4(d) that Continuing Failure To File If you underpay your tax as a result of a
transaction involving an undisclosed
is created under chapter 7 or chapter 11 If you do not file a correct and complete specified foreign financial asset, you
of the Bankruptcy Code, you do not Form 8938 within 90 days after the IRS may have to pay a penalty equal to 40%
have to report any specified foreign mails you a notice of the failure to file, of that underpayment.
financial asset held by the part of the you may be subject to an additional
trust you are considered to own. penalty of $10,000 for each 30-day Examples of underpayments due to
period (or part of a period) during which transactions involving an undisclosed
Bona Fide Resident of a U.S. you continue to fail to file Form 8938 specified foreign financial asset include
Possession after the 90-day period has expired. The the following.
maximum additional penalty for a • You do not report ownership of
If you are a bona fide resident of a U.S. continuing failure to file Form 8938 is shares in a foreign corporation on Form
possession (American Samoa, Guam, $50,000. 8938 and you received taxable
the Commonwealth of the Northern

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distributions from the company that you domestic entity and report only a part of Specified Person, earlier) who is a
did not report on your income tax return. your specified foreign financial assets current beneficiary of the trust.
• You do not report ownership of on one or more of these forms, report
shares in a foreign company on Form the remaining assets on Form 8938 and Note. If you are a paper filer and you
8938 and you sold the shares in the complete Part IV. have more than one specified individual
company for a gain and did not report or specified person, attach a statement
Continuation statements. If you have
the gain on your income tax return. listing the name and TIN of each such
more than one account or asset to
• You do not report a foreign pension specified individual or specified person.
report in Part V VIor , or more than one
on Form 8938 and you received a If you are a specified individual
issuer or counterparty to report in Part
taxable distribution from the pension TIP (see Specified Individual,
VI, use the continuation statement
plan that you did not report on your earlier) for less than the entire
provided after page 2. Copy as many
income tax return. continuation statements as you need, tax year, you only have to report the
Fraud and attach the completed statements to information for the part of the year that
If you underpay your tax due to fraud, Form 8938 following page 2. Check the you are a specified individual.
you must pay a penalty of 75% of the box at the top of page 1 of the form to
underpayment due to fraud. indicate that you are attaching Part I. Foreign Deposit and
continuation statements, and enter the
Criminal Penalties number of continuation statements in Custodial Accounts
In addition to the penalties already the space provided. Summary
discussed, if you fail to file Form 8938, Use Part I to summarize information
fail to report an asset, or have an Period Covered regarding foreign deposit and custodial
underpayment of tax, you may be File the 2020 return for calendar year accounts reported in all Parts V.
subject to criminal penalties. 2020 and fiscal years that begin in 2020
Line 1
and end in 2021. For a fiscal year, fill in
Statute of Limitations the tax year of the specified individual or Report the number of deposit accounts
If you fail to file Form 8938 or fail to specified domestic entity for whom you reported in all Parts V.
report a specified foreign financial asset are furnishing information in the space Line 2
that you are required to report, the at the top of the form.
statute of limitations for the tax year may Report the total maximum value of these
deposit accounts.
remain open for all or a part of your Identifying Information
income tax return until 3 years after the Line 3
date on which you file Form 8938. Lines 1 and 2
Report the number of custodial
Enter your name(s) and TIN as shown accounts reported in all Parts V.
Extended Statute of Limitations for on the annual return you are filing with
Failure To Include Income Form 8938. If you are a specified Line 4
individual (see Specified Individual, Report the total maximum value of these
If you do not include in your gross earlier), enter the first TIN shown on custodial accounts.
income an amount relating to one or your income tax return. A TIN is a social
more specified foreign financial assets, security number (SSN) or individual Line 5
and the amount you omit is more than taxpayer identification number (ITIN). In Indicate whether any foreign deposit or
$5,000, any tax you owe for the tax year the case of a specified domestic entity custodial accounts were closed during
can be assessed at any time within 6 (see Specified Domestic Entity, earlier), the tax year.
years after you filed your return. enter the entity’s employer identification
number (EIN).
For this purpose, specified foreign Part II. Other Foreign
financial assets include any specified Line 3 Assets Summary
foreign financial assets in which you Indicate the type of filer by checking the Use Part II to summarize information
have an interest without regard to the applicable box on line 3. If you are a regarding financial accounts (other than
reporting threshold that applies to you specified individual (see Specified foreign deposit and custodial accounts)
and regardless of any exception from Individual, earlier), check box 3a. In the and other specified foreign financial
reporting a specified foreign financial case of a specified domestic entity (see assets reported in all Parts VI.
asset on Form 8938. Specified Domestic Entity, earlier), Line 1
check the applicable box for partnership
Specific Instructions (3b), corporation (3c), or trust (3d). Report the number of accounts and
assets reported in all Parts VI.
Before you begin. If you are a Line 4
Line 2
specified individual and report all of your If you checked box 3a (specified
specified foreign financial assets on a individual), do not complete this line 4. If Report the total maximum value of these
timely filed Form 3520, 3520-A, 5471, you checked box 3b (partnership) or 3c accounts and assets.
8621, or 8865, you do not have to report (corporation), enter the name and TIN of Line 3
them on Form 8938. Instead, enter your the specified individual (see Specified
Indicate whether any account was
name(s) and taxpayer identification Individual, earlier) who closely holds the
opened or closed or any asset was
number (TIN) at the top of the form and partnership or corporation. If you
acquired or disposed of during the tax
complete Part IV only. If you are a checked box 3d (trust), enter the name
year.
specified individual or a specified and TIN of the specified person (see

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Part III. Summary of Tax attach a continuation statement with the regardless of the value of your separate
required information for each additional interest in the account.
Items Attributable to account and check the box at the top of
Specified Foreign page 1 of the form. Line 5 and 6
If you used a foreign currency exchange
Financial Assets Lines 1 Through 9 rate to convert the value of the account
Enter the following items for your total
Enter the following information for each into U.S. dollars, check the “Yes” box on
assets reported in Part V or Part VI and
foreign deposit or custodial account. line 5 and go to line 6. Otherwise, check
the schedule, form, or return on which
the “No” box and go to line 7.
you reported the items. Line 1
• Interest. Check the box to indicate if this is a Line 6
• Dividends. depository or a custodial account. If you answered “Yes” on line 5, enter
• Royalties. the following information.
• Other income. Line 2
1. The foreign currency in which the
• Gains or (losses). Enter the account number of the account is maintained.
• Deductions. account or other specific identifying
• Credits. information for the account if there is no 2. The foreign currency exchange
account number. rate used to convert the value of the
Part IV. Excepted account into U.S. dollars.
Line 3
Specified Foreign 3. If the U.S. Treasury Bureau of the
Check one or more boxes to indicate if Fiscal Service did not provide an
Financial Assets any of the following applies. exchange rate, the source of the foreign
If you reported a specified foreign • The account was opened during the currency exchange rate that you used.
financial asset on certain other forms tax year.
listed below for the same tax year, you • The account was closed during the You must use the foreign
may not have to report it on Form 8938. tax year. ! currency exchange rate on the
However, you must identify the form • The account was jointly owned with CAUTION last day of the tax year, even if
where you reported the asset by your spouse. you closed or disposed of the account
indicating how many forms you filed. • You did not report any tax item in Part before the last day of the tax year.
For more information, see Duplicative III for this asset.
Line 7a
Reporting, earlier. If you reported a Line 4 Enter the name of the financial
specified foreign financial asset on one
or more of the following forms, enter the Enter the maximum value of the account institution in which the account is
number of forms filed. during the tax year. maintained.
• Form 3520. See Reporting Maximum Value, Line 7b
• Form 3520-A. TIP earlier, for information on
If you have been furnished the Global
• Form 5471. determining the maximum value
Intermediary Identification Number
• Form 8621. of the account.
• Form 8865. (GIIN) associated with the financial
account listed on line 7a, enter it here.
Foreign Grantor Trusts Joint Interests in Foreign
If you are treated as an owner of any Deposit and Custodial If you haven't been provided a GIIN
part of a foreign grantor trust, you may Accounts by your financial institution, you can look
it up by using the FATCA Foreign
have to file Form 8938 to report Use the following rules to determine the Financial Institution (FFI) List Search
specified foreign financial assets held maximum value to report. and Download tool. You can access the
by the trust. If you are a beneficiary of tool at IRS.gov/Businesses/
the foreign trust, you may have to file Spouses Filing a Joint Return Corporations/FATCA-Foreign-Financial-
Form 8938 to report your interest in the Institution-List-Search-and-Download-
trust. You do not have to report on Form You and your spouse report the
8938 any specified foreign financial maximum value of an account held Tool.
asset held by the trust or your interest in jointly by you and your spouse only If your search returns multiple
the trust if you report the trust on a Form once on the single Form 8938 filed with instances of the same name for the
3520, you timely file for the tax year, and your joint income tax return. financial institution, use the one that
the trust timely files Form 3520-A for the most closely matches the information
tax year. Spouses Filing Separate Returns that you have. You will not be subject to
You and your spouse each report the penalties if you enter the wrong GIIN or
Part V. Detailed maximum value of an account held leave this field blank. Completing this
Information for Each jointly by you and your spouse on your information may reduce the need for the
separate Forms 8938 filed with your IRS to contact you.
Foreign Deposit and separate income tax returns. Lines 8 and 9
Custodial Account
Enter the mailing address of the
Included in the Part I Other Joint Owners financial institution in which the account
Summary Report the maximum value of the entire is maintained.
Use Part V to report information for jointly held account on your Form 8938
foreign deposit and custodial accounts. filed with your income tax return,
If you have more than one account,

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Part VI. Detailed any schedule or form attached to your exchange rate, the source of the foreign
income tax return filed for the tax year, currency exchange rate that you used.
Information for Each check the box on line 3d.
"Other Foreign Asset" You must use the foreign
Line 4 currency exchange rate on the
Included in the Part II CAUTION! last day of the tax year, even if
Check the box for the value range that
Summary represents the maximum value of the you closed the account or sold or
Use Part VI to report information for account or asset during the tax year. If disposed of the asset before the last
financial accounts (other than foreign the maximum value is more than day of the tax year.
deposit and custodial accounts) and $200,000, enter the maximum value on
other specified foreign financial assets line 4e. Lines 7a Through 7e
not held in a financial account. If you If the account or asset you reported on
have more than one asset, attach a See Reporting Maximum Value, line 1 is stock of a foreign entity or an
continuation statement with the required TIP earlier, for information on interest in a foreign entity, complete
information for each additional asset determining the maximum value lines 7a through 7e.
and check the box at the top of page 1 of the account or asset.
of the form. Line 7a
Joint Interest in Other Foreign Enter the name of the foreign entity.
Lines 1 Through 8 Assets
Line 7b
Enter the following information for each Use the following rules to figure the
financial account and specified foreign maximum value to report. If you have been furnished the GIIN
financial asset not held in a financial associated with the financial account or
account reported in Part II. For asset listed on line 1, enter it here.
examples of specified foreign financial Spouses Filing a Joint Return
assets not held in a financial account, You and your spouse report the If you haven't been provided a GIIN
see Other Specified Foreign Financial maximum value of an account or asset by your financial institution, you can look
Assets, earlier. held jointly by you and your spouse only it up by using the FATCA Foreign
once on the single Form 8938 filed with Financial Institution (FFI) List Search
Line 1 your joint income tax return. and Download tool. You can access the
Enter a description of the account or tool at IRS.gov/Businesses/
Corporations/FATCA-Foreign-Financial-
asset. If the asset is stock or securities, Spouses Filing Separate Returns Institution-List-Search-and-Download-
include the class or issue of the stock or
securities. You and your spouse each report the Tool.
maximum value of an account or asset
If your search returns multiple
Example 16. You own 100 shares of held jointly by you and your spouse on
instances of the same name for your
XYZ Company, an Italian S.A. A your separate Forms 8938 filed with
financial institution, use the one that
sufficient description is “100 Class A your separate income tax returns.
shares of XYZ Company, S.A.” most closely matches the information
that you have. You will not be subject to
Example 17. You own a bond Other Joint Owners penalties if you enter the wrong GIIN or
issued by AB GmbH, a German GmbH.
A sufficient description is “Bond of AB Report the maximum value of the entire leave this field blank. Completing this
GmbH, maturing on December 31, jointly held account or asset on your information may reduce the need for the
2019.” Form 8938 filed with your income tax IRS to contact you.
return, regardless of the value of your
Line 7c
Line 2 separate interest in the account or
Enter the identifying number or other asset. Check the box on line 7c to indicate the
type of foreign entity.
information identifying the account or Lines 5 and 6
asset. Lines 7d and 7e
If you used a foreign currency exchange
Line 3 rate to convert the value of the account Enter the mailing address of the foreign
Enter the following information about the or asset into U.S. dollars, check the entity.
account or asset, if required. “Yes” box on line 5 and go to line 6. Lines 8a Through 8e
1. If the account was opened or Otherwise, check the “No” box and go
closed, or the asset was acquired or to line 7. If the account or asset you reported on
line 1 is not stock of a foreign entity or
disposed of during the year, enter the Line 6 an interest in a foreign entity, complete
date of opening and/or closure, or If you answered “Yes” on line 5, enter lines 8a through 8e.
acquisition and/or disposition, as the following information.
applicable. If the assets were acquired Note. If this account or asset has more
or disposed of during different dates in 1. The foreign currency in which the than one issuer or counterparty, copy
the year, enter “Various.” account or asset is denominated. the continuation statement provided
2. If you own the account or asset 2. The foreign currency exchange after page 2 as many times as needed
jointly with your spouse, check the box rate used to convert the value of the and complete a separate line 8 for each
on line 3c. account or asset into U.S. dollars. issuer or counterparty. Check the box at
3. If you did not report any income, 3. If the U.S. Treasury Bureau of the the top of page 1 of the form.
gain, loss, deduction, or credit for this Fiscal Service did not provide an
account or asset on your tax return or

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Line 8a the United States. Section 6038D number 1545-0123. The estimated
Enter the name of the issuer or requires specified individuals and burden for all other taxpayers who file
counterparty and check the appropriate specified domestic entities to report this form is shown below.
box to indicate if you are reporting for an specified foreign financial assets in
issuer or a counterparty. which they have an interest. Form 8938 Learning about
is used to comply with this reporting the law or the
Line 8b requirement. form 57 min.
Check the appropriate box to indicate You are not required to provide the Preparing the
the type of issuer or counterparty. information requested on a form that is form 2 hr., 57 min.
Line 8c subject to the Paperwork Reduction Act Copying,
unless the form displays a valid OMB assembling,
Check the box to indicate if the issuer or control number. Books or records and sending the
counterparty is a U.S. person or a relating to a form or its instructions must form to the IRS 48 min.
foreign person. be retained as long as their contents
Lines 8d and 8e may become material in the
administration of any Internal Revenue
Enter the mailing address of the issuer If you have comments concerning the
law. Generally, tax returns and return
or counterparty. If the issuer or accuracy of these time estimates or
information are confidential, as required
counterparty has a mailing address in suggestions for making this form
by section 6103.
the United States, you can enter the simpler, we would be happy to hear
U.S. mailing address. The time needed to complete and file from you. See the instructions for the tax
this form will vary depending on return with which this form is filed.
Paperwork Reduction Act Notice. individual circumstances. The estimated
We ask for the information on this form burden for business taxpayers filing this
to carry out the Internal Revenue laws of form is approved under OMB control

Instructions for Form 8938 (2020) -13-

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Index
 
                            Exceptions To Reporting 8                                  Other Specified Foreign 
A                             Duplicative Reporting 8      S                           Financial Assets                   6
Assets Not Required To Be     Foreign Grantor Trusts  9    Special Rules 4
  Reported 8                                               Specified Person 1
                                                             Excepted Specified       V
                            I                                Domestic Entities    3   Valuing:
C                           Interests in Specified Foreign   Passive Income   2        Valuing Financial 
Closely Held Domestic         Financial Assets 6             Specified Domestic        Accounts     8
  Corporation 2                                              Entity  2                 Valuing Interests in 
Closely Held Domestic                                        Specified Individual 1    Foreign Estates, 
  Partnership 2             P                                                          Foreign Pension Plans, 
Constructive Ownership 2    Passive Income 2                                           and Foreign Deferred 
Continuation Statements 10  Penalties 9                    T                           Compensation Plans                  8
                              Accuracy-Related             Types of Reporting          Valuing Interests in 
                              Penalty   9                    Thresholds  3             Foreign Trusts                    8
D                             Criminal Penalties 10          Reporting Thresholds      Valuing Other Specified 
Determining the Total Value   Failure-To-File Penalty 9      Applying to Specified     Foreign Financial 
  of Your Specified Foreign   Fraud 10                       Domestic Entities    4    Assets 8
  Financial Assets 4                                         Reporting Thresholds 
  Asset With No Positive                                     Applying to Specified 
  Value 4                   R                                Individuals   3          W
                            Reporting Maximum Value   7    Types of Specified Foreign When and How To File                1
                              Foreign Currency               Financial Assets 6       Who Must File 1
E                             Conversion     7               Financial Account 6
Excepted Specified          Reporting Period 7               Foreign Financial 
  Domestic Entities 3                                        Institution  6

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