U.S. taxpayers with foreign financial assets may face two separate reporting requirements: the FBAR (FinCEN Form 114) and IRS Form 8938 under the Foreign Account Tax Compliance Act (FATCA). While these forms often require overlapping information, they are governed by different laws, have different filing thresholds, and are submitted to different government agencies. This guide provides a detailed comparison and explains when you may be required to file one—or both.
🆚 Quick Comparison: FBAR vs. Form 8938
| Feature | FBAR (FinCEN Form 114) | Form 8938 (FATCA) |
|---|---|---|
| Governing Authority | Financial Crimes Enforcement Network (FinCEN) | Internal Revenue Service (IRS) |
| Filed With | FinCEN via BSA E-Filing System | IRS, attached to your tax return (Form 1040) |
| Filing Threshold | $10,000 aggregate in foreign accounts | Starts at $50,000 (varies by filing status and residence) |
| Who Must File | U.S. persons (citizens, residents, entities) | Specified individuals and entities |
| Types of Assets | Bank accounts, securities accounts, etc. | Bank accounts, stocks, partnerships, trusts, insurance, etc. |
| Form Format | Electronic only via FinCEN portal | Paper or e-filed with tax return |
| Deadline | April 15 (auto extension to Oct 15) | Tax return due date (April 15 or extended to Oct 15) |
| Penalties for Noncompliance | Severe: $10,000+ for non-willful, $100,000+/criminal for willful | Up to $10,000 + $50,000 continuation penalties |
💰 Form 8938 Filing Thresholds for Individuals (2025)
- Single/Married Filing Separately (U.S. residents): $50,000 on 12/31 or $75,000 anytime during the year
- Married Filing Jointly (U.S. residents): $100,000 on 12/31 or $150,000 anytime during the year
- Single or Joint Filers Living Abroad: $200,000 on 12/31 or $300,000 anytime during the year
📋 What Assets Must Be Reported on Each Form?
FBAR Includes:
- Bank and securities accounts in foreign institutions
- Foreign retirement and pension accounts
- Foreign mutual funds and pooled investments
Form 8938 Includes:
- Everything required on FBAR plus:
- Foreign stock or securities held outside of financial accounts
- Foreign partnership interests
- Foreign trusts and estates
- Foreign-issued life insurance or annuity contracts
- Foreign real estate held via a foreign entity
🔄 Duplicate Reporting: Do You File Both?
Yes, often you must file both forms. Even if you already report accounts on FBAR, you must also file Form 8938 if your total specified foreign assets exceed FATCA thresholds. However, you can reference your FBAR filing within Form 8938 to avoid redundant entries.
Example:
If you are a single filer with foreign bank accounts totaling $85,000, you must:
- File FBAR (aggregate exceeds $10,000)
- File Form 8938 (exceeds $75,000 year-end threshold)
⚠️ Penalties for Noncompliance
FBAR Penalties:
- Non-willful violation: Up to $10,000 per violation
- Willful violation: Greater of $100,000 or 50% of the account balance
- Criminal prosecution: Possible in severe cases
Form 8938 Penalties:
- $10,000 failure-to-file penalty
- Additional $10,000/month (up to $50,000) for continued failure after IRS notice
- Accuracy-related penalties (20% of underreported income)
📌 Summary: When to File Each Form
- File FBAR: If foreign financial account balances exceed $10,000 in aggregate
- File Form 8938: If total specified foreign assets exceed FATCA thresholds for your filing status
- File Both: When both conditions are met (which is often the case)
Staying compliant with FBAR and FATCA is critical to avoiding severe financial and legal consequences. While the forms are similar, each serves a different purpose and is governed by distinct legal frameworks. If you’re unsure about your filing obligations, consult a tax professional with experience in international asset reporting.
