FBAR vs. Form 8938: Foreign Account Reporting Guide

The United States taxes its citizens and resident aliens on their worldwide income. To enforce this, the government requires strict disclosure of foreign bank accounts, investments, and assets. Failing to report them triggers some of the most devastating financial penalties in the entire tax code.

FinCEN Form 114 (FBAR)

The Report of Foreign Bank and Financial Accounts (FBAR) is not filed with your tax return; it is filed directly with the Financial Crimes Enforcement Network (FinCEN).

• The Threshold: You must file an FBAR if the aggregate maximum value of all your foreign financial accounts exceeded $10,000 at any time during the calendar year.
• The Penalty: A non-willful failure to file carries a penalty of $10,000 per violation. A willful failure can result in a penalty of $100,000 or 50% of the account balance—whichever is greater—plus criminal prosecution.

IRS Form 8938 (FATCA)

The Foreign Account Tax Compliance Act (FATCA) requires you to file Form 8938 attached directly to your Form 1040 tax return.

• The Threshold: The thresholds are much higher than the FBAR and depend on your filing status and residency. For example, a single taxpayer living in the US must file if their specified foreign assets exceed $50,000 on the last day of the year or $75,000 at any point during the year.
• The Overlap: You may be required to file both the FBAR and Form 8938 in the same year. Filing one does not excuse you from filing the other.