Do I need to file Form 8938 for foreign ETFs in my US brokerage account?

Wait, so what about FBAR filing? Is that different? Do they need to file that one since they have over $10,000 in a financial account?

No, FBAR filing (FinCEN Form 114) is different from Form 8938, but it follows the same principle in this case. FBAR is only required for foreign financial accounts, meaning accounts physically held at financial institutions outside the US. Since the original poster's account is with Chase Bank in the US, they wouldn't need to file an FBAR either, regardless of the value or the types of investments held in that US account. FBAR reporting would only come into play if they had accounts with financial institutions outside the United States that exceeded $10,000 in aggregate at any point during the year.

How does it work with other investment accounts? I have accounts at Fidelity, Vanguard, and a small international account in Canada. Would it tell me which ones need reporting?

Does this work for more complicated situations? I have a family trust that owns foreign rental properties plus some offshore accounts. Tax preparer wants to charge me $1500 extra just for the foreign reporting forms.

It handles multiple investment accounts very well. You just upload statements from all your accounts, and it identifies which ones are reportable foreign accounts based on where they're physically located. So it would flag your Canadian account as needing to be reported but would show the Fidelity and Vanguard accounts as domestic. For more complex situations like family trusts with foreign rental properties and offshore accounts, it actually excels at these cases. It identifies all the different reporting requirements that apply to each asset type. I'd bet you could save a good chunk of that $1500 your preparer wants to charge, since it specifically analyzes which forms are needed for foreign trusts, rental properties, and offshore accounts.

How does that even work? The IRS phone line always hangs up on me after saying "due to high call volume...

Yeah right. Nobody gets through to the IRS these days. I've been calling for months trying to fix an issue with my account. Either this is fake or they're doing something sketchy to bypass the queue.

It works by using technology to navigate the IRS phone system and wait on hold for you. When you sign up, they start calling the IRS repeatedly using their system. Once they get through and reach the hold queue, their system waits on hold instead of you. When an actual IRS agent picks up, they call your phone and connect you directly to the agent who's already on the line. Nothing sketchy about it - they're just using an automated system to handle the frustrating hold time and call attempts. I was skeptical too until I tried it. I had been trying for weeks with no success, then within about 45 minutes of using their service, I was talking to an actual IRS agent who helped resolve my question about foreign investment reporting. Totally legitimate service that saves you from the endless redial and hold cycle.

Thanks for bringing this up! I'm not familiar with a separate FATCA form - I thought Form 8938 was the FATCA reporting form for individuals? Are there other FATCA forms I should be looking into?

Form 8938 is indeed the primary FATCA reporting form for individuals. There's not a separate "FATCA form" beyond that for most individual taxpayers. I should have been more clear in my terminology. However, depending on your specific situation, there might be other international information returns that could apply. For example, if you have any interest in foreign corporations, you might need Form 5471; for foreign partnerships, Form 8865; for foreign trusts, Forms 3520/3520-A. But based on what you described - just having foreign ETFs in a US brokerage account - these additional forms likely wouldn't apply to you.

This is correct. I learned this the hard way. The PFIC rules are a nightmare but you absolutely have to file 8621 for each foreign ETF that qualifies as a PFIC. My accountant charges me $150 PER FORM for each PFIC I own. Totally ridiculous but better than the penalties.

This is such a helpful summary, thank you! I'm new to dealing with international tax issues and the distinction between account location vs. investment type is something I definitely didn't understand before reading this thread. Quick question - when you mention asking the portfolio manager for a list of foreign funds, should I be looking for specific information beyond just the fund names? Like do I need expense ratios, distribution details, or other specific data to determine PFIC status? I want to make sure I'm asking for the right information when I contact Chase. Also, has anyone found a reliable way to research PFIC status online, or is this something that really requires professional guidance? Some of these ETFs have pretty complex structures and I'm worried about missing something important.