FATCA (Foreign Account Tax Compliance Act)
Compliance for specified foreign financial assets.
FATCA requires U.S. taxpayers to report specified foreign financial assets if their value exceeds certain thresholds. This is filed on Form 8938 with your federal income tax return.
Who Must File?
U.S. citizens, resident aliens, and certain domestic entities with foreign assets exceeding the thresholds below.
What to Report?
- •Foreign bank/brokerage accounts
- •Foreign stocks/securities (not held in a U.S. account)
- •Interests in foreign entities (partnerships, corporations, trusts)
Filing Thresholds
| Filing Status & Location | Year-End | Anytime |
|---|---|---|
| Living in the U.S. | ||
| Single or MFS | > $50,000 | > $75,000 |
| Married Filing Jointly | > $100,000 | > $150,000 |
| Living Abroad | ||
| Single or MFS | > $200,000 | > $300,000 |
| Married Filing Jointly | > $400,000 | > $600,000 |
Penalties for Non-Filing
| Violation | Penalty |
|---|---|
| Failure to file | $10,000 base |
| Continued failure (30-day increments) | Up to $50,000 additional |
| Tax understatement due to non-disclosure | 40% of underpayment |