Foreign accounts & expats
FBAR vs FATCA: what's the difference?
FBAR and FATCA are two separate reporting regimes for foreign financial assets, run by different agencies, with different thresholds and different forms. FBAR (FinCEN Form 114) is filed with the Treasury's FinCEN division starting at a $10,000 aggregate account threshold. FATCA (Form 8938) is filed with the IRS as part of your tax return, with higher thresholds that depend on your filing status and whether you live in the US. Many people with foreign accounts must file both.
Almost every client who has foreign accounts asks this question eventually, usually after hearing about one and wondering if it covers the other. It doesn't — and getting this wrong (assuming one filing satisfies both requirements) is one of the most common, and most avoidable, compliance mistakes we see.
Side by side
| FBAR | FATCA / Form 8938 | |
|---|---|---|
| Filed with | FinCEN (Treasury), via BSA E-Filing | IRS, attached to Form 1040 |
| Form | FinCEN Form 114 | Form 8938 |
| Threshold | $10,000 aggregate, at any time in the year | $50,000–$600,000 depending on filing status and residence |
| What's reportable | Foreign financial accounts (bank, brokerage, some pension accounts) | Broader: accounts plus foreign stock, fund interests, and certain other foreign assets |
| Deadline | April 15, automatic extension to October 15 | With your tax return, including extensions |
| Typical penalty exposure | Can be severe, especially if willful | $10,000 initial, additional penalties for continued non-filing |
Why people get this wrong
The confusion is understandable: both rules exist because of the same underlying policy goal (stopping unreported offshore assets), both involve foreign accounts, and both got significantly more attention after FATCA passed in 2010. But they were created by different laws, are enforced by different agencies, and a filing under one has no bearing on your obligation under the other. We regularly see taxpayers who dutifully filed an FBAR every year and had no idea Form 8938 existed — or vice versa.
Do I have to file both?
It depends entirely on your numbers. Since Form 8938's thresholds are considerably higher than FBAR's $10,000 trigger, it's common to owe an FBAR without needing Form 8938. It's less common, but possible, to cross the Form 8938 threshold while having accounts that individually or in aggregate don't hit the FBAR line — though because FBAR's bar is so low, most people who reach FATCA's threshold owe an FBAR too.
What if I've been filing only one?
This is fixable. Depending on whether the omission was willful, there are structured paths back into compliance — see our FBAR penalties & voluntary disclosure guide and our Form 8938 guide for the details on each. The sooner it's addressed, generally, the better the available options.
Frequently asked questions
If I file Form 8938, do I still need to file an FBAR?
Yes, if you meet the FBAR threshold. They are entirely separate filings with separate requirements.
My accountant only asked about one of these. Should I worry?
It's worth a conversation. Foreign-account reporting is a specialized area, and it's common for preparers who don't focus on international tax to miss one or the other. A quick review of your accounts against both thresholds is a sensible check.
Do these apply to retirement accounts held abroad?
Often yes, depending on the type of account and country — foreign pension and retirement accounts are a frequent source of surprise FBAR and FATCA exposure. This is worth reviewing individually.
Not sure which of these applies to you?
Talk it through with a licensed Enrolled Agent — free, and in your language.
Request a free consultationThis page is general educational information, not legal or tax advice for your specific situation, and does not create a client relationship. FBAR and FATCA rules, thresholds, and penalty amounts change — verify against current official instructions or consult a qualified tax professional before acting.