A comprehensive study is conducted on finite element modeling and stress analysis techniques of above ground atmospheric bulk liquid storage tanks with foundation settlements. Both 2-D and 3-D modeling are examined for their applicability and limitations. Simple elastic analysis and 3-step method using a hybrid elastic-plastic procedure are explored and compared. In addition, data processing techniques are proposed to extract effective settlements from tank inspection measurements, which could be used for proper reconstruction of a settled foundation in finite element model. Procedures and practices are proposed and demonstrated to improve the finite element modeling and analysis of storage tanks.