Foreign account and asset reporting is the part of cross-border compliance where the penalties are often larger than the tax. A U.S. person with an Indian savings account, a Canadian brokerage account or shares in a foreign company may owe several reports even when the income was small or already taxed abroad. Our firm prepares the U.S. reports, and we coordinate the Canadian and Indian equivalents with your Canadian CPA and your Indian CA so every filing lists the same accounts and values.
Which foreign account and asset reporting forms apply to you?
| Report | Who files | Trigger | Where and when |
|---|---|---|---|
| FBAR (FinCEN 114) | U.S. citizens, residents and U.S. entities | Combined foreign accounts above $10,000 at any time in the year | Filed with FinCEN through the BSA E-Filing System; due April 15, with an automatic extension to October 15 |
| Form 8938 | U.S. filers meeting an asset threshold | See the threshold table below | Attached to your income tax return |
| Form 8621 | Shareholders of a passive foreign investment company | Distributions, gains or annual reporting | Attached to your return |
| Form 3520 | U.S. persons receiving large foreign gifts or dealing with foreign trusts | Over $100,000 from a nonresident alien individual in a year | Due with the return, April 15 for most calendar-year filers |
| Form T1135 (Canada) | Canadian residents | Specified foreign property costing more than CAD 100,000 | Due with the Canadian return |
| Schedule FA (India) | Indian resident filers | Foreign assets and accounts | Part of the Indian income-tax return |
The Form 8938 thresholds, according to the IRS, are below. They are tested on the total value of specified foreign financial assets.
| Filer | Year-end value above | Any time during year above |
|---|---|---|
| Single, living in the U.S. | $50,000 | $75,000 |
| Married filing jointly, living in the U.S. | $100,000 | $150,000 |
| Single, living abroad | $200,000 | $300,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
The IRS lists foreign accounts, foreign stock and securities, contracts with non-U.S. persons and interests in foreign entities as specified assets. Real estate you own directly is not on that list, though its rent and sale are still reportable income. Form 8938 is filed only if you must file an income tax return.
How the engagement works
- Consultation. We ask what you hold in India and Canada, who is on each account, and whether anyone signs for an employer's foreign account.
- Written engagement agreement. It names the reports in scope, the years covered and the fee basis, and you sign before we start.
- Document checklist. We send a spreadsheet to fill in with accounts, owners, highest balances and year-end balances.
- Preparation. We convert foreign-currency balances to dollars with a consistent, documented method and decide which report each item belongs on.
- Review. We compare our lists against your Canadian and Indian lists and resolve differences.
- Filing. We file the FBAR and attach the return forms. Your Canadian CPA and Indian CA file theirs.
- Follow-up. We store the support, set next year's reminders and watch for notices.
Documents and information to prepare
- Name of each institution, account type, account number and country, and every owner or signer.
- The highest balance during the year and the balance on December 31, in the account currency.
- Statements showing interest, dividends and capital gains for the year.
- Details of foreign mutual funds, ETFs or company shares, including purchase dates and costs.
- Any foreign trust, foreign corporation or partnership interests you own.
- Records of any large gifts received from relatives abroad, with donor, date and amount.
Penalties and deadlines to know
The FBAR for 2025 was due April 15, 2026, and the automatic extension ended October 15, 2026. If you have not filed, do it now. Form 8938 carries a $10,000 failure-to-file penalty, with up to $50,000 more for continued failure after IRS notice and a 40% penalty on any underpayment tied to undisclosed assets. Reasonable cause can defend against some penalties, and omitting more than $5,000 of income from a specified foreign asset extends the assessment period to six years. We do not promise penalty relief, but we do build the reasonable-cause file when it is warranted. For the penalty picture see the IRS foreign reporting penalties guide.
Common situations and fixes
- Joint accounts. Each U.S. person with a financial interest has a reporting obligation, and we confirm whether spouses may file together on your facts.
- Signature authority only. A finance manager who signs on an employer's account in Mumbai or Toronto may have an FBAR duty without owning anything.
- Retirement and pension accounts. Some foreign retirement and trust accounts are excluded from the FBAR, but others are not, and Form 8938 and other forms may still apply. We test each account.
- Indian mutual funds. These are often passive foreign investment companies, which means Form 8621 and special tax computations. See the Form 8621 guide.
- Past omissions. The IRS streamlined procedures exist for taxpayers who certify that their failure to report was non-willful, and they are unavailable if the IRS has begun a civil examination. We assess which route fits with you and your other advisers.
A worked example
Raj and Pooja, married filing jointly, live in Naperville. Their Indian NRO and NRE accounts, a Mumbai fixed deposit and a Canadian brokerage account total $120,000 at year-end and reached $140,000 earlier in the year. For the FBAR, the $10,000 aggregate threshold is far exceeded, so an FBAR is required, and we confirm whether the couple may file one jointly or must each file. For Form 8938, the year-end value of $120,000 exceeds the $100,000 married filing jointly year-end threshold, so the form is attached to their return. If they lived abroad, the thresholds would be $400,000 and $600,000 and Form 8938 would not apply. Their Canadian T1135 is not triggered because they are not Canadian residents, and their Indian CA decides how Schedule FA applies to any Indian filing they make.
How we can help
Our Aurora, Illinois firm prepares FBARs, Form 8938 and related U.S. forms for clients across the Fox Valley and Chicago suburbs. We handle the U.S. side and coordinate with your Canadian CPA or Indian CA so the three sets of reports agree. See cross-border tax services, IRS and state representation and the FBAR, T1135 and Schedule FA comparison. Our full list of services is on the services page.
Frequently asked questions
Do I file an FBAR if I only earn a little interest abroad?
Income does not matter for the FBAR. If your combined foreign accounts exceeded $10,000 at any time in the year, a report is required.
Do I need both an FBAR and Form 8938?
Many people do, because the two have different thresholds, assets and filing channels. The FBAR goes to FinCEN and Form 8938 goes with your income tax return.
Does a Canadian TFSA or RESP count as a foreign account?
It is generally a foreign financial account for reporting purposes, and its U.S. tax treatment can be different from Canada's. See the Form 3520 guide and ask us about your plan type.
What if I never filed in earlier years?
Do not guess. We review your history, the amounts and the reason for the omission, and explain the options before anything is filed.
Will you file the Canadian T1135 or the Indian Schedule FA?
No. Your Canadian CPA files the T1135 and your Indian CA completes the Schedule FA. We coordinate the lists.
Official sources
- FinCEN: Report foreign bank and financial accounts
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Summary of FATCA reporting for U.S. taxpayers
- CRA: Foreign Income Verification Statement (T1135)
- IRS: Streamlined filing compliance procedures
- IRS: Gifts from foreign persons
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.