---
kind: "section"
citation: "26 U.S.C. § 6038D"
title: "26"
title_heading: "Internal Revenue Code"
number: "6038D"
heading: "Information with respect to foreign financial assets"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6038D"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 61 — Information and Returns"
  - "Subchapter A — Returns and Records"
  - "Part III — Information Returns"
  - "Subpart A — Information Concerning Persons Subject to Special Provisions"
---

# §6038D. Information with respect to foreign financial assets

- (a) **In general—** Any individual who, during any [taxable year](/usc/26/7701.md?p=a-23), holds any interest in a specified [foreign](/usc/26/7701.md?p=a-5) financial asset shall attach to such [person](/usc/26/7701.md?p=a-1)’s return of tax imposed by subtitle A for such [taxable year](/usc/26/7701.md?p=a-23) the information described in [subsection (c)](#c) with respect to each such asset if the aggregate value of all such assets exceeds $50,000 (or such higher dollar amount as the [Secretary](/usc/26/7701.md?p=a-11-B) may prescribe).
- (b) **Specified foreign financial assets—** For purposes of this section, the term “specified [foreign](/usc/26/7701.md?p=a-5) financial asset” means—
  - (1) any financial account (as defined in [section 1471(d)(2)](/usc/26/1471.md?p=d-2)) maintained by a [foreign](/usc/26/7701.md?p=a-5) financial institution (as defined in [section 1471(d)(4)](/usc/26/1471.md?p=d-4)), and
  - (2) any of the following assets which are not held in an account maintained by a financial institution (as defined in [section 1471(d)(5)](/usc/26/1471.md?p=d-5))—
    - (A) any [stock](/usc/26/7701.md?p=a-7) or security issued by a [person](/usc/26/7701.md?p=a-1) other than a [United States person](/usc/26/7701.md?p=a-30),
    - (B) any financial instrument or [contract](/usc/26/101.md?p=f-3-A) held for investment that has an issuer or counterparty which is other than a [United States person](/usc/26/7701.md?p=a-30), and
    - (C) any interest in a [foreign](/usc/26/7701.md?p=a-5) entity (as defined in [section 1473](/usc/26/1473.md)).
- (c) **Required information—** The information described in this subsection with respect to any asset is:
  - (1) In the case of any account, the name and address of the financial institution in which such account is maintained and the number of such account.
  - (2) In the case of any [stock](/usc/26/7701.md?p=a-7) or security, the name and address of the issuer and such information as is necessary to identify the class or issue of which such [stock](/usc/26/7701.md?p=a-7) or security is a part.
  - (3) In the case of any other instrument, [contract](/usc/26/101.md?p=f-3-A), or interest—
    - (A) such information as is necessary to identify such instrument, [contract](/usc/26/101.md?p=f-3-A), or interest, and
    - (B) the names and addresses of all issuers and counterparties with respect to such instrument, [contract](/usc/26/101.md?p=f-3-A), or interest.
  - (4) The maximum value of the asset during the [taxable year](/usc/26/7701.md?p=a-23).
- (d) **Penalty for failure to disclose—**
  - (1) **In general—** If any individual fails to furnish the information described in [subsection (c)](#c) with respect to any [taxable year](/usc/26/7701.md?p=a-23) at the time and in the manner described in [subsection (a)](#a), such [person](/usc/26/7701.md?p=a-1) shall pay a penalty of $10,000.
  - (2) **Increase in penalty where failure continues after notification—** If any failure described in [paragraph (1)](#d-1) continues for more than 90 days after the day on which the [Secretary](/usc/26/7701.md?p=a-11-B) mails notice of such failure to the individual, such individual shall pay a penalty (in addition to the penalties under [paragraph (1)](#d-1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The penalty imposed under this paragraph with respect to any failure shall not exceed $50,000.
- (e) **Presumption that value of specified foreign financial assets exceeds dollar threshold—** If—
  - (1) the [Secretary](/usc/26/7701.md?p=a-11-B) determines that an individual has an interest in one or more specified [foreign](/usc/26/7701.md?p=a-5) financial assets, and
  - (2) such individual does not provide sufficient information to demonstrate the aggregate value of such assets,

  then the aggregate value of such assets shall be treated as being in excess of $50,000 (or such higher dollar amount as the [Secretary](/usc/26/7701.md?p=a-11-B) prescribes for purposes of [subsection (a)](#a)) for purposes of assessing the penalties imposed under this section.

- (f) **Application to certain entities—** To the extent provided by the [Secretary](/usc/26/7701.md?p=a-11-B) in regulations or other guidance, the provisions of this section shall apply to any [domestic](/usc/26/7701.md?p=a-4) entity which is formed or availed of for purposes of holding, directly or [indirectly](/usc/26/101.md?p=a-3-B), specified [foreign](/usc/26/7701.md?p=a-5) financial assets, in the same manner as if such entity were an individual.
- (g) **Reasonable cause exception—** No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a [foreign](/usc/26/7701.md?p=a-5) jurisdiction would impose a civil or criminal penalty on the [taxpayer](/usc/26/7701.md?p=a-14) (or any other [person](/usc/26/7701.md?p=a-1)) for disclosing the required information is not reasonable cause.
- (h) **Regulations—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, [including](/usc/26/7701.md?p=c) regulations or other guidance which provide appropriate exceptions from the application of this section in the case of—
  - (1) classes of assets identified by the [Secretary](/usc/26/7701.md?p=a-11-B), [including](/usc/26/7701.md?p=c) any assets with respect to which the [Secretary](/usc/26/7701.md?p=a-11-B) determines that disclosure under this section would be duplicative of other disclosures,
  - (2) nonresident aliens, and
  - (3) bona fide residents of any possession of the [United States](/usc/26/7701.md?p=a-9).

## Source credit

(Added Pub. L. 111–147, title V, § 511(a), Mar. 18, 2010, 124 Stat. 109.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 111–147, title V, § 511(c), Mar. 18, 2010, 124 Stat. 110, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after the date of the enactment of this Act [Mar. 18, 2010].”