P1-U17 · PART 1 · SOURCE CYCLE 2026-2027
Foreign Financial Reporting
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.
Q1.Which form reports specified foreign financial assets when the applicable FATCA threshold is met?
Form 8938, Statement of Specified Foreign Financial Assets.
Q2.What account-value threshold generally triggers an FBAR filing?
More than $10,000 in aggregate foreign financial accounts at any time during the calendar year.
Q3.Recall the rule for this EA objective in Income And Assets: Foreign pensions and retirement income
Its taxable amount is included in income
Q4.Recall the rule for this EA objective in Specialized Returns For Individuals: Filing and reporting requirements and due dates (e.g., FBAR, Form 8938, Form 8865, Form 5471, Form 3520)
Form 8938 is filed with the income tax return; FBAR is filed electronically with FinCEN
Q5.Recall the rule for this EA objective in Specialized Returns For Individuals: Distinctions between FBAR and Form 8938 requirements
Form 8938 is an IRS tax-return attachment, while FBAR is FinCEN Form 114 filed separately
Q6.When must a U.S. person file an FBAR?
when the person has a financial interest in or signature authority over foreign financial accounts and the aggregate value exceeds $10,000 at any time during the calendar year the FBAR is filed with FinCEN, not on the Form 1040 separate Form 8938 thresholds do not replace the FBAR filing duty
Q7.How does Form 8938 relate to the FBAR?
Form 8938 reports specified foreign financial assets to the IRS with the income-tax return when thresholds are met FBAR reports foreign financial accounts to FinCEN filing one form does not satisfy the other when both are required
Q8.When may Form 3520 be required for an individual with foreign connections?
Form 3520 reports certain transactions with foreign trusts and certain large gifts or bequests from foreign persons it is generally filed separately from Form 1040 penalties can apply for failure to timely file complete and accurate international information returns
Q9.What records should a taxpayer keep for foreign-account reporting?
account statements showing maximum values during the year ownership and signature-authority documentation income records needed to report interest and dividends on the tax return copies of any FBAR and Form 8938 filings