FlagSageFATCA (Foreign Account Tax Compliance Act)
Glossary term
FATCA is a US law that requires foreign financial institutions to report on accounts held by US account holders and requires some US taxpayers to report specified foreign financial assets.
The IRS says FATCA generally requires foreign financial institutions and certain other foreign entities to report on the foreign assets held by their US account holders, or face withholding on certain payments. Institutions register and receive a Global Intermediary Identification Number, and FATCA reporting uses Form 8966. The IRS also points to intergovernmental agreements between the United States and other governments.
Separately, some US taxpayers must report specified foreign financial assets on Form 8938, depending on the value of those assets. Thresholds depend on the person's situation, so check the current IRS guidance.
Form 8938 is not the same as the FBAR, which is filed with FinCEN, and the IRS publishes guidance comparing the two. FATCA reporting does not by itself decide whether income is taxable.
Not to be confused with
- FBAR. The FBAR is a separate report on foreign accounts filed with FinCEN, not with the tax return.
- Common Reporting Standard. The CRS is the OECD's multilateral reporting standard, built on the FATCA approach but separate from it.
Sources
- Foreign Account Tax Compliance Act (FATCA)Official guidance
Related
- Countries covered
- General
- Sources
- 1 sources
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026