American citizens living abroad must file several specialized tax forms with the IRS and the U.S. Treasury. Missing any of these filings can trigger penalties, even if the taxpayer is otherwise compliant with U.S. tax law. Below is a concise guide to the most common forms that expats need to track, the situations that trigger them, and the key filing thresholds.
FBAR – FinCEN Form 114
Required for U.S. persons with foreign financial accounts whose aggregate balance exceeds $10,000 at any time during the calendar year.
- Includes bank accounts, brokerage accounts, and other financial accounts held at non‑U.S. institutions.
- The $10,000 threshold is combined across all foreign accounts, not per account.
- Filing is made with the Financial Crimes Enforcement Network (FinCEN), not the IRS.
- Signatory authority (e.g., being authorized to act on a foreign account owned by a corporation you control) can also trigger the FBAR requirement.
FATCA – Form 8938
Reports foreign financial assets to the IRS. Thresholds differ from the FBAR and are higher for expats.
| Taxpayer status | Year‑end threshold | Threshold at any time during the year |
|---|---|---|
| Single, living abroad | $300,000 | $600,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
| Single, living in the U.S. | $50,000 | $75,000 |
| Married filing jointly, living in the U.S. | $100,000 | $150,000 |
- Form 8938 is filed with the IRS, whereas the FBAR is filed with the Treasury’s FinCEN.
- The form applies to a wide range of foreign assets, including bank accounts, securities, and interests in foreign entities.
Form 5471 – Information Return of U.S. Persons With Respect to Certain Foreign Corporations
Required when a U.S. person has a substantial interest in a foreign corporation, particularly a Controlled Foreign Corporation (CFC).
- Triggers include being a shareholder, officer, director, or otherwise exercising control over a foreign corporation.
- The form is divided into five categories (Category 1‑5); the specific category depends on the taxpayer’s relationship to the corporation.
- Penalties for non‑filing are steep, so accurate determination of the applicable category is essential.
Forms 3520 and 3520‑A – Reporting Foreign Trusts and Receipt of Foreign Gifts
Needed for any interaction with foreign trusts, including contributions, distributions, or ownership.
- Form 3520 reports receipt of distributions from, or contributions to, a foreign trust, as well as certain gifts from foreign persons.
- Form 3520‑A is filed by the foreign trust itself (or its fiduciary) to provide annual information to the IRS.
- Failure to file can result in substantial penalties.
Form 2555 – Foreign Earned Income Exclusion (FEIE)
Allows qualifying expats to exclude a set amount of foreign earned income from U.S. taxation.
- Exclusion amount for 2026: $132,900.
- Eligibility requires meeting either the bona‑fide residence test or the physical presence test.
Form 8621 – Information Return for Certain Foreign Corporations (PFIC)
Mandatory when a U.S. person holds shares in a Passive Foreign Investment Company (PFIC).
- A PFIC is identified by meeting either the income test or the asset test under U.S. tax law.
- Reporting includes detailed calculations of gains, distributions, and potential tax and interest liabilities.
Form 8992 – U.S. Shareholder’s Information Return of GILTI (Global Intangible Low‑Taxed Income)
Reports “CFC‑tested income,” formerly known as GILTI, for U.S. shareholders of Controlled Foreign Corporations.
- Requires complex calculations to determine the portion of foreign corporation income attributable to the U.S. shareholder.
- Failure to file can lead to additional tax and penalties.
Form 8865 – Return of U.S. Persons With Respect to Certain Foreign Partnerships
Applicable when a U.S. person has an interest in a foreign partnership.
- Triggers include ownership of a 10% or greater interest, or certain transactions with the partnership.
- Similar in scope to Form 1065 for domestic partnerships but filed with the IRS for foreign entities.
Practical considerations for expats
- Timing: Most of these forms are due with the regular U.S. tax return (April 15, with automatic extensions to October 15). The FBAR, however, is filed electronically through FinCEN’s BSA E‑File system and is due by April 15, with an automatic extension to October 15.
- Penalties: Non‑filers can face civil penalties ranging from $10,000 per violation to up to 50% of the account balance for willful violations (especially for FBAR and Form 5471).
- Professional assistance: Because many domestic CPAs lack experience with these expatriate-specific filings, engaging a tax professional familiar with international tax compliance is advisable to avoid costly errors.
Staying aware of these filing obligations and meeting the associated deadlines helps American expatriates maintain compliance while taking full advantage of the tax benefits available to them abroad.
