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FATCA

Also known as: Foreign Account Tax Compliance Act, FATCA Reporting

Quick answer

FATCA creates foreign financial-account reporting obligations for financial institutions and certain taxpayers. Under the IRS rules checked in 2026, individuals qualifying as living abroad generally file Form 8938 above $200,000 at year-end or $300,000 during the year; joint-filer thresholds are $400,000 and $600,000 respectively. Filing obligations and exceptions depend on the person's circumstances.

IRS — FATCA reporting for US taxpayers · checked 9 Nov 2026

Reference:Form 8938; FATCA

Form 8938 covers specified foreign financial assets and accompanies the applicable income-tax return. The IRS living-abroad conditions must be met before using the higher thresholds; merely being overseas on the filing date is insufficient.

FATCA reporting does not replace FBAR. The forms have different scope, thresholds and filing channels. Foreign financial institutions also have separate duties to identify and report relevant accounts under the applicable FATCA arrangements.

Sources

Related terms

FBAR

FBAR is the foreign financial-account report filed on FinCEN Form 114. Under the rules checked in 2026, a US person generally must file when reportable foreign accounts exceed $10,000 in aggregate at any time during the calendar year. Financial interest or signature authority can trigger reporting. FBAR is separate from the income-tax return and Form 8938.

IRS Streamlined Filing Compliance Procedure

The IRS Streamlined Filing Compliance Procedures are available to eligible taxpayers whose foreign-income or asset-reporting failures were non-wilful. The foreign offshore procedure requires the relevant three years of tax returns, six years of FBARs and a signed certification. Eligibility includes a specific non-residency test; living abroad alone is insufficient.

FEIE (Foreign Earned Income Exclusion)

The Foreign Earned Income Exclusion allows eligible US taxpayers to exclude up to $132,900 of qualifying foreign earned income for tax year 2026. A foreign tax home and either the bona fide residence or physical presence test are required. The physical presence test requires 330 full days in foreign countries during a consecutive 12-month period. The exclusion does not reduce self-employment tax.

CRS (Common Reporting Standard)

The Common Reporting Standard is the OECD framework for automatic exchange of financial-account information between participating tax authorities. Financial institutions apply domestic due-diligence and reporting rules to identify relevant account holders and tax residences. Participation and activated exchange relationships must be checked for the relevant reporting year; a global membership count does not establish a particular exchange.

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