FATCA: the reason your UK bank asks if you're American.
FATCA works from both ends. UK financial institutions report their US-person customers to the IRS via HMRC — and you report your foreign financial assets on Form 8938 with your return. The overlap with FBAR confuses almost everyone, and neither filing substitutes for the other.
Figures relate to tax year 2025 (US) · 2025-26 (UK)
Form 8938, and who must file it
Form 8938 attaches to the 1040 and lists specified foreign financial assets: bank and investment accounts, foreign pensions, holdings in foreign funds and certain interests in foreign entities.
Thresholds are far higher for genuine residents abroad — broadly $200,000 at year-end for single filers and $400,000 for joint filers, with higher in-year peaks — than the $50,000/$100,000 levels that apply to US residents. Below threshold, no 8938; the FBAR's much lower $10,000 trigger still applies.
- Specified assets: accounts, pensions, funds, entity interests
- Higher thresholds for taxpayers living abroad
- Filed with the 1040 — separate from the FBAR
- Penalties from $10,000 for non-filing, more if it continues
The bank's side of the bargain
Your UK bank's questions — place of birth, US person declarations, requests for a W-9 — are FATCA compliance. What they report flows to the IRS, which means mismatches between bank reporting and your own filings are visible.
That is the practical reason catch-up filings should come before the letter does: the information exchange already exists.
Primary sources
Official guidance from the IRS, FinCEN and GOV.UK. Thresholds and rates on those pages are updated annually — check the current tax year before relying on a figure.
Questions, Answered.
What clients ask about fatca us reporting
What's the difference between FATCA (Form 8938) and FBAR?
Different laws, different agencies, different thresholds. The FBAR goes to FinCEN once accounts exceed $10,000 in aggregate; Form 8938 goes to the IRS with your return at much higher thresholds but covering a broader asset list. Many people owe both.
My bank asked me to complete a W-9. Should I?
If you are a US person, yes — that is the correct form, and refusing tends to end with a closed account or forced reporting anyway. The right response is making sure your own filings match what the bank will report.
Are UK pensions reportable on Form 8938?
Generally yes, as an interest in a foreign retirement plan, with a reasonable valuation. Reporting is not taxation — the treaty handles the tax side — but leaving pensions off the 8938 is a common and avoidable gap.
What are the FATCA penalties for not filing Form 8938?
The base penalty is $10,000, climbing by $10,000 increments (to $50,000) if non-filing continues after IRS notice, plus accuracy penalties on any related understatement. Because UK banks report the same accounts, non-filing is visible — which is why catch-up should be proactive.
Do joint accounts with a non-American spouse go on Form 8938?
Yes — a US person reports their interest in jointly held specified assets, and with a non-US spouse generally the full value of joint accounts is reported by the US filer. The reporting doesn't tax the spouse; it just describes the account.
Next Step.
Tell us what you hold — the scope and a fixed fee follow in writing.