There’s an important reporting rule that affects many expats living or working in the United States — and it often shows up as a surprise.In this episode of Abroad in America, we break down FATCA and Form 8938, one of the most misunderstood parts of U.S. tax reporting for people with financial connections outside the country. While many expats are familiar with the FBAR requirement, Form 8938 operates under a different set of rules and applies to a broader range of foreign financial assets.If you maintain bank accounts, investments, pensions, or other financial assets outside the United States, understanding how FATCA works — and how Form 8938 fits into your tax return — is essential to staying compliant and avoiding unnecessary penalties.We explain the purpose behind FATCA, why foreign banks now report account information to the U.S. government, and how Form 8938 requires individuals to disclose certain foreign financial assets as part of their annual tax filing.You’ll also learn how Form 8938 differs from the FBAR, why the reporting thresholds are different, and why some expats may have to file one form, the other, or both.In this episode, we cover:What FATCA is and why the law was created How foreign banks report U.S. account holders to the IRS What Form 8938 is and how it fits into your tax return The difference between FATCA reporting and FBAR reporting Which foreign financial assets must be disclosed The reporting thresholds that trigger Form 8938 filing Why some expats must file both Form 8938 and the FBAR Potential penalties for failing to file when requiredFor many expats, these rules can seem complicated at first. But once you understand the purpose behind FATCA and how Form 8938 works, the reporting process becomes much clearer — and much easier to manage. Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn