Glossary · Reporting
FATCA
FATCA is a US law requiring US taxpayers to report specified foreign financial assets on Form 8938, and requiring foreign financial institutions to report US-held accounts to the IRS. Its individual reporting thresholds are higher than the FBAR threshold.
Foreign Account Tax Compliance Act
In more detail
FATCA has two arms: individuals report specified foreign financial assets (accounts plus assets like foreign stock and partnership interests) on Form 8938 when they exceed residency-based thresholds, and foreign banks report their US account holders to the IRS. For Americans living abroad the Form 8938 thresholds are much higher than the FBAR threshold of $10,000 — broadly starting at $200,000 for a single filer at year-end. FATCA and FBAR are independent: meeting one does not satisfy the other.
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