Understanding FATCA: Reporting Rules for Americans with Foreign Accounts 

FATCA is a U.S. law enacted in 2010 to curb offshore tax evasion by increasing reporting transparency. Under this law, U.S. citizens, Green Card holders, and certain U.S. residents must report specified foreign financial assets on Form 8938 as part of their annual federal tax return—if their total offshore holdings exceed IRS thresholds.

“Specified foreign financial assets” include items such as foreign bank accounts, investment portfolios, certain foreign pensions, ownership in foreign entities, and other non-U.S. financial instruments.

For individuals living abroad, FATCA reporting generally applies when the aggregate value of these foreign financial assets exceeds:

• $200,000 at year-end or $300,000 at any point during the year (Single or Married Filing Separately while living abroad), or
  
  

• $400,000 at year-end or $600,000 at any point during the year (Married Filing Jointly while living abroad).

Under FATCA, foreign banks and other financial institutions are required to report the account information of U.S. persons directly to the IRS. This includes account balances, identifying details, and in many cases transaction histories. As a result, the IRS now receives extensive third-party data from over 300,000 institutions worldwide—significantly increasing its ability to match offshore accounts with unreported U.S. filings.

At Taxoria, FATCA compliance is integrated seamlessly into our expat tax process.
• Form 8938 (FATCA Reporting): $150
• U.S. Individual Tax Return Preparation: $500
• FBAR Filing (if required): Available as an add-on at a flat rate

If you’re unsure whether Form 8938 applies to you, we’ll review your asset profile and confirm the exact filing requirements before we begin. Our practice focuses exclusively on U.S. expat and cross-border tax—ensuring efficient, accurate reporting backed by deep technical expertise.