The FATCA is a law that empowers the IRS to investigate and penalize tax evasion by U.S. Taxpayers with financial assets overseas. Pursuant to US tax legislation, all US citizens and US tax residents must pay taxes on their worldwide income, regardless of whether the US citizen resides in the US or outside US. The Statement of Specified Foreign Financial Assets is be attached in Form 8938 to your Federal Tax Return in which you must disclose those assets to enable the IRS to ensure that any taxes on income earned on those foreign assets have been paid.

Form 8938 Filing Thresholds:

If you live within the U.S. the entire tax year, you must file Form 8938 if the value of your Specified Foreign Financial Assets are:

• More than $50,000 (or $100,000 if Married Filing Jointly)
  at the end of the year, OR

• More than $75,000 (or $150,000 if Married Filing Jointly) 
  at any time in the year

Expats living abroad must file Form 8938 if the value of these assets are:

• More than $200,000 (or $400,000 if Married Filing Jointly)
  at the end of the year, OR

• More thank $300,000 (or $600,000 if Married Filing Jointly)
  at any time during the year 

Many Foreign Financial Institutions must report their U.S. Citizen and resident clients â € ™ accounts worth more than $50,000. If you â € ™ re an expat who hasn’t been filing returns and FBARs, this could affect you.

As Form 8938 is to be filed with your U.S. Income Tax Return, due dates applicable to Form 1040 apply. Automatic extensions for expats living abroad or additional extensions to October 15 can provide more time to collect needed information from Foreign Financial Institutions and determine your filing requirements.