What Does “FATCA Filing Requirement” Box Checked Mean for US Expats?
FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938. Yet, thousands of expats worry unnecessarily when they see that small checkbox marked on their 1099 forms.
Here’s the relief you need: A checked FATCA filing requirement box usually means the financial institution is doing its job by reporting your information to the IRS. It rarely requires any immediate action from you.
However, depending on your foreign asset thresholds, it may indicate you need to file additional forms. Here’s precisely what that checkbox means and what you should do next.
What Does the FATCA Filing Requirement Checkbox Mean?
The FATCA filing requirement checkbox appears on virtually every type of Form 1099, including 1099-MISC, 1099-INT, 1099-DIV, 1099-B, and 1099-R. This small box is a notification system between financial institutions and the IRS.
When checked, it indicates that the payer (your bank, broker, or financial institution) reports this specific form’s details to the IRS under Foreign Account Tax Compliance Act regulations. The checkbox is primarily for the institution’s compliance purposes, not yours.
You never need to check if this box is empty. This box is for the payer’s use only.
Should I Be Worried If This Box Is Checked?
Most expats can breathe easy when they see this box checked. It doesn’t automatically mean you’ve done anything wrong or that penalties are coming your way.
The checked box typically indicates one of two scenarios:
Scenario 1: Routine Reporting
Your financial institution determined that FATCA reporting applies to your account based on its internal compliance procedures. This is standard practice for many institutions serving US persons abroad.
Scenario 2: Asset Threshold Indicator
The institution believes that, based on your account activity or asset levels, you may be subject to FATCA reporting requirements.
Does This Mean I Need to File Form 8938?
While the checkbox doesn’t require action, it can serve as a helpful reminder to evaluate your FATCA obligations. You may need to file Form 8938 (Statement of Specified Foreign Financial Assets) if your foreign assets exceed these thresholds:
For US Expats Living Abroad:
- Single filers: $200,000 on the last day of the tax year OR $300,000 at any point during the year
- Married filing jointly: $400,000 on the last day of the tax year OR $600,000 at any point during the year
For Americans Living in the US:
- Single filers: $50,000 on the last day of the tax year OR $75,000 at any point during the year
- Married filing jointly: $100,000 on the last day of the tax year OR $150,000 at any point during the year
These thresholds apply to the total value of your specified foreign financial assets, not just the account mentioned on your 1099.
What Happens in Different Expat Situations?
- Corporate Expats: Working for multinational companies often triggers checked FATCA boxes on multiple 1099s due to international benefit structures. Sarah, in London with UK pension contributions and stock options exceeding $400,000, needs Form 8938.
- Entrepreneur Expats: Business owners see checked boxes from foreign business accounts and investment platforms. Mark in Germany with $180,000 in business assets stays below the $200,000 threshold.
- Digital Nomads: Frequent movers see checked boxes from multiple countries as they bank internationally.
Keep detailed records throughout the year. The “at any point during the year” threshold often surprises expats.
What Assets Count Toward These Thresholds?
When determining if you need to file Form 8938, include these foreign assets:
Reportable: Foreign bank accounts, stocks and securities, mutual funds, pension plans, life insurance with cash value, interests in foreign entities.
Not Reportable: Foreign real estate held directly, foreign currency, precious metals, Social Security equivalent benefits.
How Does This Differ From FBAR Requirements?
A checked FATCA box might also prompt you to consider FBAR (Foreign Bank Account Report) requirements with different thresholds and purposes.
FBAR Requirements:
- File if you have $10,000 or more in foreign bank accounts at any point during the year
- Filed separately with FinCEN, not with your tax return
- Due April 15 with automatic extension to October 15
FATCA Requirements:
- File Form 8938 with your tax return if you exceed asset thresholds
- Covers a broader range of foreign financial assets
- Higher thresholds but more comprehensive reporting
Many expats need to file both FBAR and FATCA reports for the same assets.
What If I Haven’t Been Filing Required Forms?
If seeing a checked FATCA box makes you realize you should have been filing Form 8938 or FBARs, don’t panic. Greenback has helped over 23,000 expats resolve filing issues, and penalty-relief options are available.
Streamlined Filing Procedures allow eligible taxpayers to catch up on delinquent filings without facing the standard penalties, which can be substantial:
- FATCA penalties start at $10,000 per violation
- FBAR penalties can reach $12,921 per account for non-willful violations
Key requirement: You must certify that your failure to file was non-willful (due to ignorance rather than intentional avoidance).
Common Mistakes to Avoid
- Don’t ignore the reminder: Use it as a prompt to review your filing obligations. Many expats discover they’ve been under-reporting for years.
- Don’t check empty boxes: Never check the box yourself – it’s solely for the payer’s use.
- Don’t assume institutions always know: Some may check the box unnecessarily, but it’s worth investigating your actual obligations.
Your Next Steps Based on Your Situation
- The FATCA thresholds are for monitoring asset levels and maintaining good records.
- Near or above thresholds: Consult an expat tax professional for compliance guidance.
- Been non-compliant: Consider Streamlined Filing Procedures for penalty-free catch-up.
- Uncertain about obligations: Ask questions now to avoid penalties later.
Peace of Mind for Your FATCA Compliance
Most expats who see this checkbox don’t owe additional taxes thanks to the Foreign Earned Income Exclusion (up to $130,000 for 2025) and the Foreign Tax Credit.
We’ve helped over 23,000 expats file over 71,000 returns while maintaining a 4.9-star average on TrustPilot. No matter how late, messy, or complex your return may be, we can help you get your expat taxes done right.
Have questions about the FATCA filing requirement checkbox? Contact us, and one of our customer champions will gladly help. If you need specific advice on your tax situation, click below to get a consultation with one of our expat tax experts.
The information provided is for general guidance only and should not be considered professional tax advice. Tax laws and regulations are subject to change, and individual circumstances may vary. Please consult with a qualified tax professional for specific advice regarding your tax situation.
