A Thai bank account, a local brokerage account, and a retirement plan can create more than one U.S. reporting obligation. If you are asking, do I need Form 8938, the answer depends on the value and type of your foreign financial assets, your filing status, and whether you meet the IRS definition of living abroad. It is not determined by whether those assets produce taxable income.
Form 8938 is the IRS statement for specified foreign financial assets under FATCA. It is filed with your federal income tax return, not separately. For many Americans in Thailand and other overseas locations, the higher thresholds for taxpayers living abroad mean the form is not required every year. But when it is required, missing it can lead to significant penalties even if you do not owe additional U.S. tax.
Do I Need Form 8938 Based on My Asset Value?
You generally file Form 8938 only if you are required to file a U.S. federal income tax return and the total value of your specified foreign financial assets exceeds the applicable threshold. The threshold is based on the combined value of all reportable assets, not the balance of one account.
For unmarried taxpayers and married taxpayers filing separately who qualify as living abroad, Form 8938 is generally required when foreign financial assets exceed $200,000 on the last day of the tax year or $300,000 at any point during the year.
For married couples filing jointly who qualify as living abroad, the thresholds are $400,000 on the last day of the year or $600,000 at any time during the year.
The lower thresholds apply if you do not qualify as living abroad. For example, an unmarried taxpayer living in the United States generally has a $50,000 year-end threshold or a $75,000 threshold at any time during the year. Married taxpayers filing jointly generally use $100,000 and $150,000 thresholds.
The phrase “living abroad” has a technical meaning. A U.S. citizen generally qualifies if they have a foreign tax home and are a bona fide resident of another country. Alternatively, a U.S. citizen or resident alien may qualify by being physically present in one or more foreign countries for at least 330 full days during a 12-month period ending in the tax year. A temporary move overseas, frequent travel back to the United States, or uncertainty about your tax home can affect which threshold applies.
Which Foreign Assets Count on Form 8938?
Form 8938 covers more than foreign bank accounts. It can include foreign financial accounts as well as foreign assets held outside an account.
Common reportable items include bank, savings, and deposit accounts at Thai or other non-U.S. financial institutions; foreign brokerage and investment accounts; foreign-issued stocks and securities held directly; interests in foreign partnerships or corporations; foreign mutual funds; and certain foreign pensions, deferred compensation arrangements, life insurance policies, annuities, and interests in foreign estates.
For example, a U.S. citizen in Bangkok may hold a Thai savings account, shares in a Thai company, and units in an overseas investment fund. Each item may need to be considered when calculating the Form 8938 total. The fact that an asset is reported on a Thai tax return, used for a local business, or produces no current income does not automatically remove it from the analysis.
Some assets do not belong on Form 8938. Real estate held directly is generally not a specified foreign financial asset. A condominium in Thailand held in your own name, for instance, is not reported merely because it is located overseas. However, if you own that condominium through a foreign corporation, partnership, trust, or similar entity, your ownership interest in that entity may be reportable.
Likewise, foreign stock held in a U.S. brokerage account is generally not a Form 8938 asset because the account is maintained by a U.S. financial institution. The custody arrangement matters, not just the country where the company is based.
Form 8938 and FBAR Are Different Filings
A common and costly mistake is assuming that filing an FBAR means you have handled FATCA reporting, or that Form 8938 replaces the FBAR. They are separate requirements with different forms, thresholds, filing methods, and deadlines.
The FBAR applies when the aggregate maximum value of your foreign financial accounts exceeds $10,000 at any time during the calendar year. It is filed electronically as FinCEN Form 114, rather than attached to your tax return. The $10,000 threshold is much lower than the Form 8938 threshold, so many expats must file an FBAR even though they do not need Form 8938.
Form 8938 can include accounts reported on the FBAR, but it can also cover assets that the FBAR does not, such as directly held foreign shares or certain interests in foreign entities. There is overlap, but there is no general rule that lets one filing substitute for the other.
A practical example: if your Thai checking account reached $25,000 during the year and you have no other foreign assets, you may have an FBAR filing requirement but likely no Form 8938 filing requirement if you qualify for the abroad thresholds. If you also hold a $250,000 foreign investment account, Form 8938 may become required even if the accounts generate little or no taxable income.
How to Calculate the Value of Foreign Assets
The IRS generally uses the asset’s fair market value in U.S. dollars. For an account, this is usually the highest balance during the year. For stock, business interests, pensions, and other non-account assets, valuation may require account statements, market data, issuer records, or a reasonable good-faith estimate.
Use a consistent exchange-rate approach and retain the records used to support your calculation. Thai baht balances can move materially when converted to U.S. dollars, particularly when account values are close to a filing threshold. Do not rely only on the balance showing on December 31, because Form 8938 also tests the highest value at any time during the year.
Jointly owned assets require additional care. How an asset is reported may depend on your filing status, ownership structure, and whether your spouse is a U.S. person. Married filing separately is especially sensitive because the lower individual thresholds may apply, and foreign assets held through a spouse, company, or trust can create separate reporting questions.
Foreign Businesses and Investments Can Trigger Other Forms
Form 8938 is only one piece of international compliance. Owning or operating a Thai company may also require Forms 5471, 8865, or 8858, depending on the entity type and your ownership. Foreign trusts, gifts, inheritances, and certain pension arrangements may involve Form 3520. Foreign mutual funds and similar pooled investments can raise PFIC reporting issues on Form 8621.
These forms have different tests and filing rules. A business owner should not assume that a Form 8938 filing covers a foreign corporation, and an investor should not assume a reported brokerage account resolves PFIC reporting. This is where a coordinated review is more efficient than treating each form as an isolated task.
What Happens If You Miss Form 8938?
The initial penalty for failing to file Form 8938 when required can be $10,000. If the IRS sends a notice and the form is still not filed, additional penalties can apply, generally increasing by $10,000 for each 30-day period after the notice, up to a maximum additional penalty of $50,000.
There can also be tax consequences if the unreported assets generated income that was omitted from your return. In some cases, the statute of limitations for the tax return can remain open longer when foreign assets are not properly disclosed. Penalty relief may be possible when there is reasonable cause, but it should not be assumed and needs to be supported by the facts.
If you have missed prior-year filings, the right response depends on whether the issue is limited to Form 8938, includes FBARs, involves unfiled tax returns, or relates to a foreign company or trust. Filing a form without reviewing the full picture can create inconsistencies across years.
A Practical Way to Check Your Filing Requirement
Start by listing every non-U.S. account and investment you owned or had an interest in during the year. Include accounts you can sign for, jointly held accounts, Thai business accounts, retirement accounts, investment platforms, and foreign entities. Then identify the highest U.S. dollar value of each asset, add the reportable values together, and compare the total with the threshold that matches your filing status and overseas residency position.
Finally, check the separate FBAR threshold and any foreign entity reporting obligations. This process is manageable when records are organized, but it becomes more technical when assets are jointly owned, held through a Thai company, denominated in multiple currencies, or connected to a pension or investment fund.
For expats with a mix of Thai accounts, local business interests, and international investments, getting the classification right before filing is usually the fastest way to reduce compliance stress. A focused review can confirm whether Form 8938 is necessary and help ensure your U.S. return, FBAR, and foreign business reporting tell a consistent story.