FlagSageWhat this covers
The FBAR and Form 8938 are two separate US reports about foreign financial assets. The FBAR comes from the Bank Secrecy Act and is filed electronically with the Financial Crimes Enforcement Network. Form 8938 comes from the Foreign Account Tax Compliance Act (FATCA) and is filed with the IRS as part of the income tax return. They overlap for ordinary foreign bank and investment accounts but differ in thresholds, in what they cover, and in penalties. Neither one is a tax bill by itself.
Start from the rule that these are two different reports
The IRS comparison page says the Form 8938 requirement does not replace or otherwise affect the duty to file FinCEN Form 114. Unlike Form 8938, the FBAR is not filed with the IRS. It goes directly to FinCEN, a bureau of the Treasury Department.
The IRS tells individuals to check the requirements and thresholds of each form and decide whether they must file Form 8938, the FBAR, or both. See the FBAR, FATCA and Form 8938 entries for short definitions.
| Point | Form 8938 | FBAR (FinCEN Form 114) |
|---|---|---|
| Who files | Specified individuals (US citizens, resident aliens and certain nonresident aliens) and specified domestic entities | US persons, including citizens, resident aliens, trusts, estates and domestic entities |
| US territories | Not treated as part of the United States | Residents of US territories and territory entities are covered |
| What is reported | Maximum value of specified foreign financial assets, including accounts and certain non-account investments | Maximum value of financial accounts at institutions physically located abroad |
| Value conversion | Fair market value in US dollars at the end-of-tax-year exchange rate | Maximum value from periodic statements, converted at the end-of-calendar-year rate |
| When due | With the annual return, including extensions | April 15, with an automatic extension to October 15 |
| Where filed | Attached to the income tax return | Electronically through FinCEN's BSA E-Filing System, not with the tax return |
Check the thresholds for your filing status and where you live
The FBAR threshold is the same everywhere: the aggregate value of your foreign financial accounts exceeds $10,000 at any time in the calendar year. The IRS says this is cumulative, so two accounts whose combined balance passes $10,000 at one moment both have to be reported.
Form 8938 thresholds depend on filing status and on whether you count as living abroad. The IRS says you are a taxpayer living abroad if you are a US citizen with a foreign tax home who is a bona fide resident of a foreign country for an uninterrupted period including the entire tax year, or a US citizen or resident present in a foreign country for at least 330 days during 12 consecutive months ending in the tax year. These echo the bona fide residence and physical presence tests.
| Situation | Form 8938: last day of the tax year | Form 8938: any time during the year | FBAR |
|---|---|---|---|
| Living in the US, unmarried or married filing separately | More than $50,000 | More than $75,000 | Aggregate accounts over $10,000 at any time |
| Living in the US, married filing jointly | More than $100,000 | More than $150,000 | Aggregate accounts over $10,000 at any time |
| Living abroad, any return other than joint | More than $200,000 | More than $300,000 | Aggregate accounts over $10,000 at any time |
| Living abroad, joint return | More than $400,000 | More than $600,000 | Aggregate accounts over $10,000 at any time |
Sort your assets into what each report covers
The two reports overlap for ordinary accounts at foreign institutions and part ways for other holdings. The IRS comparison page lists the main cases. When a foreign account is reported, the stocks or funds inside it do not have to be listed separately on either form.
| Asset | Form 8938 | FBAR |
|---|---|---|
| Deposit or custodial account at a foreign financial institution | Yes | Yes |
| Account at a foreign branch of a US financial institution | No | Yes |
| Foreign account where you only have signature authority | No, unless you otherwise have an interest | Yes, subject to exceptions |
| Foreign stock or securities held outside any account | Yes | No |
| Foreign partnership interest | Yes | No |
| Foreign mutual fund | Yes | Yes |
| Foreign life insurance or annuity with a cash value | Yes | Yes |
| Foreign hedge fund or private equity fund | Yes | No |
| Foreign real estate held directly | No | No |
| Foreign currency, precious metals or personal property held directly | No | No |
| Foreign government social security type benefits | No | No |
Look at the exceptions before assuming a report is due
For the FBAR, the IRS lists accounts that do not need to be reported, including accounts owned by a governmental entity or an international financial institution, accounts on a US military banking facility, and accounts held in an IRA or a retirement plan of which you are an owner, participant or beneficiary. A spouse who jointly owns all accounts can let the other spouse file by signing FinCEN Form 114a, and the IRS says income tax filing status has no effect on that exception.
For Form 8938, the IRS says that if you do not have to file an income tax return for the year, you do not need to file Form 8938 even when your assets pass the threshold. Accounts maintained by a US payer, by a foreign branch of a US financial institution, or by a US branch of a foreign financial institution do not go on Form 8938.
Assets already reported on certain other IRS forms, such as Form 3520, Form 5471 or Form 8621, do not have to be listed again on Form 8938. You still count their value toward the threshold and identify those forms in Part IV. Foreign funds often raise the separate question of PFIC reporting on Form 8621.
Note where and when each report is filed
The IRS says the FBAR is an annual report due April 15 after the calendar year reported, with an automatic extension to October 15 that you do not need to request. It must be filed electronically through the BSA E-Filing System unless FinCEN approves a paper-filing exemption. FinCEN has issued further extensions for disaster areas and certain financial professionals, so check its current notices.
Form 8938 travels with the income tax return, so its due date is the return's due date, including extensions. For people abroad that can mean the automatic June 15 date or a later extended date. See US tax deadlines for Americans abroad.
Read the penalties as the IRS describes them
For Form 8938, the instructions say failing to file a complete and correct form by the due date may bring a $10,000 penalty. If you still do not file within 90 days after an IRS notice, an additional $10,000 may apply for each 30-day period, up to $50,000 more. A 40% accuracy-related penalty can apply to an underpayment from a transaction involving an undisclosed asset, and criminal penalties may also apply. The instructions say no penalty is imposed if the failure was due to reasonable cause and not willful neglect, which you must show.
Form 8938 also affects the time the IRS has to assess tax. The instructions say a missing or incomplete Form 8938 can keep the statute of limitations open until 3 years after you file it, and an omission of more than $5,000 of income from these assets can allow assessment within 6 years.
For the FBAR, the IRS says civil penalty maximums are adjusted each year for inflation and that whether penalties are asserted depends on facts and circumstances. You must keep records for each reported account, including the account number, the bank's name and address, the account type and the maximum value, generally for five years from the FBAR due date.
People who missed reports can read the IRS options for late filing. See streamlined filing compliance.
Common misconceptions
Questions to take to a professional
- Do my combined foreign account balances pass $10,000 at any point in the calendar year?
- Do I count as living abroad for Form 8938, and which threshold applies to my filing status?
- Which of my holdings are accounts, and which are non-account assets such as directly held foreign shares or partnership interests?
- Do any of my foreign pensions, insurance policies or funds fall into the reportable categories?
- Do I have signature authority over an employer's or a relative's foreign account?
- Am I required to file an income tax return this year, which decides whether Form 8938 applies at all?
- If I missed earlier FBARs or Forms 8938, which IRS procedure fits my situation?
Questions people ask
What is the difference between FBAR and FATCA?
The FBAR is FinCEN Form 114, filed with FinCEN under the Bank Secrecy Act. FATCA reporting by individuals is Form 8938, filed with the income tax return. They have different thresholds and coverage, and the IRS says one does not replace the other.
What is the Form 8938 threshold for US citizens living abroad?
The IRS says a taxpayer living abroad files if specified foreign assets are more than $200,000 on the last day of the year or more than $300,000 at any time, for a return other than a joint return. On a joint return the figures are more than $400,000 and more than $600,000.
When is the FBAR due?
The IRS says the FBAR is due April 15 following the calendar year reported, with an automatic extension to October 15. You do not need to request the extension.
Do I need to file Form 8938 if I do not have to file a tax return?
No. The IRS says that if you do not have to file an income tax return for the year, you do not need to file Form 8938, even if your assets pass the threshold. The FBAR follows its own rules.
Do I report a foreign retirement account on the FBAR?
It depends on the account. The IRS lists accounts held in an IRA or in a retirement plan of which you are a participant or beneficiary among those that do not need FBAR reporting. Whether a particular foreign pension falls under that description is a question for a professional.
What is the penalty for not filing Form 8938?
The Form 8938 instructions describe a $10,000 penalty for failure to file, an additional $10,000 for each 30 days after 90 days from an IRS notice up to $50,000 more, a 40% accuracy-related penalty in some cases, and possible criminal penalties. Reasonable cause can prevent the penalty.
Where this guide stops. A qualified US tax professional, such as an enrolled agent, a certified public accountant or a tax attorney, decides with you which accounts and assets each report covers and prepares the filings. The FBAR is submitted through FinCEN's BSA E-Filing System. FlagSage does not file reports or tell you whether you must file.
Sources
- Comparison of Form 8938 and FBAR requirementsOfficial guidance
- Do I need to file Form 8938, Statement of Specified Foreign Financial Assets?Official guidance
- Instructions for Form 8938 (11/2021)Official guidance
- Report of Foreign Bank and Financial Accounts (FBAR)Official guidance
- Report Foreign Bank and Financial Accounts (FinCEN)Official guidance
- Publication 54 (12/2025), Tax Guide for U.S. Citizens and Resident Aliens AbroadOfficial guidance
Related
- Countries covered
- United States
- Sources
- 6 sources listed above
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 9, 2026