FBAR vs. FATCA Form 8938: What U.S. Taxpayers Need to Know

If you have foreign bank accounts, investment accounts, or other overseas financial assets, you may need to report them to the U.S. government. Two commonly confused reporting requirements are the FBAR (FinCEN Form 114) and FATCA Form 8938.

Although these forms can cover some of the same accounts, they have different filing requirements, thresholds, and submission processes. Understanding the differences can help you avoid overlooking an important reporting obligation.

Hi, I’m Attorney Chad Silver, founder of Silver Tax Group. We help taxpayers plan their foreign account compliance, develop disclosure strategies, and address potential issues before the IRS or FinCEN. Our experienced legal team handles these matters in-house.

Let’s break down what you need to know about FBAR versus Form 8938.

1. What Is an FBAR?

FBAR stands for Foreign Bank Account Report. Its official name is FinCEN Form 114.

The FBAR is filed electronically through the Financial Crimes Enforcement Network (FinCEN), which is part of the U.S. Department of the Treasury. It is separate from your federal income tax return.

Generally, a U.S. person must file an FBAR if they have a financial interest in, or signature authority over, qualifying foreign financial accounts whose combined value exceeds $10,000 at any time during the calendar year.

The FBAR primarily reports qualifying foreign financial accounts and their maximum values during the reporting year.

You can access the official filing system here:

https://bsaefiling.fincen.treas.gov/

2. What Is FATCA Form 8938?

Form 8938, Statement of Specified Foreign Financial Assets, is associated with the Foreign Account Tax Compliance Act, commonly known as FATCA.

Unlike the FBAR, Form 8938 is filed with your federal income tax return when required. It is submitted to the IRS and covers specified foreign financial assets, which can include certain foreign financial accounts and other reportable financial interests.

The filing threshold depends on your filing status and whether you live in the United States or abroad.

For example, for an unmarried taxpayer living in the United States, Form 8938 generally applies when the total value of specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year. Other thresholds apply to married taxpayers and certain taxpayers living abroad.

Form 8938 is an asset-reporting form, not a substitute for reporting income. If a foreign account earns taxable interest, dividends, or other income, that income generally must be reported on the appropriate part of your tax return, subject to applicable rules and exceptions.

3. The Main Differences Between FBAR and Form 8938

The most important distinction is where each form is filed and what it covers.

FBAR — FinCEN Form 114

• Filed separately through FinCEN’s BSA E-Filing System.
• Generally applies when the combined value of qualifying foreign financial accounts exceeds $10,000 at any point during the year.
• Focuses on reportable foreign financial accounts and their maximum values.
• Is not filed as part of Form 1040.

FATCA — Form 8938

• Filed with your federal income tax return and submitted to the IRS.
• Has thresholds that vary according to filing status and residence.
• Covers specified foreign financial assets, including certain assets that may not be reportable on an FBAR.
• Does not replace the requirement to report taxable income on your tax return.

Because the forms have different purposes, filing one does not automatically satisfy the requirements for the other.

4. Do You Need to File Both Forms?

In many cases, yes. If you meet the filing requirements for both forms, you generally must file both, even if the same foreign account appears on each.

However, the rules are not identical. Some assets may be reportable on one form but not the other, depending on the type of asset and the applicable requirements.

That is why taxpayers should evaluate each reporting obligation separately rather than assume one filing covers everything.

5. Example: An American Expat Living in Germany

Consider John, a U.S. taxpayer living in Germany who holds €60,000 in a local German savings account.

Because the account’s value exceeds $10,000 in U.S. dollars, John would generally need to file an FBAR if the account is reportable and no exception applies.

Now suppose John also earns $2,000 in interest from that account. The interest generally must be reported on his U.S. income tax return, even though the account is located overseas.

John must also determine whether the value of his specified foreign financial assets meets the applicable Form 8938 threshold. If it does, he may need to file Form 8938 in addition to his FBAR.

The important point is that the account balance, the income it generates, and the applicable filing thresholds must each be considered separately.

6. Common Mistakes to Avoid

Foreign account reporting can become complicated, especially for taxpayers who live abroad or hold several types of financial accounts.

Here are some common mistakes to watch for.

Filing an FBAR but forgetting Form 8938.

The two forms have separate requirements. You should determine whether you need to file each one.

Failing to report foreign income.

Interest, dividends, and other taxable income earned through foreign accounts generally must be reported on the appropriate tax return forms. Filing an FBAR does not satisfy those income-reporting obligations.

Assuming the FBAR is part of Form 1040.

The FBAR is submitted separately through FinCEN’s electronic filing system.

Assuming every foreign asset has the same reporting requirements.

Foreign bank accounts, brokerage accounts, pensions, and retirement arrangements can receive different treatment under the reporting rules. The specific account structure and your circumstances matter.

Ignoring missed filings from previous years.

If you discover that you failed to file required reports, the appropriate next step depends on the facts, including why the filings were missed and whether unreported income or other tax issues are involved. Certain taxpayers may qualify for IRS compliance procedures, but eligibility and potential outcomes must be evaluated individually.

7. What About Foreign Retirement Accounts?

Foreign retirement arrangements can raise additional reporting questions.

For example, a dual U.S. citizen with a UK savings or retirement account, or an American living in Australia with a superannuation arrangement, may need to consider whether the account triggers FBAR, Form 8938, income-tax, or other reporting obligations.

The answer depends on the specific account and applicable rules. Do not assume that every foreign retirement account is automatically reportable on both forms—or that it is exempt from reporting.

A careful review can help identify the requirements that apply to your situation.

8. How Silver Tax Group Can Help

At Silver Tax Group, we help taxpayers understand their foreign account reporting obligations, evaluate potential filing issues, and develop an appropriate compliance or disclosure strategy.

If you’re unsure whether you need to file an FBAR, FATCA Form 8938, or both, professional guidance can help you understand your obligations and evaluate the options available to address past reporting issues.

Contact Silver Tax Group at 855-910-1040 to discuss your circumstances and develop a foreign account compliance strategy.

No guessing. No unnecessary fear. Just a clear, informed approach to your tax reporting obligations.

I’m Attorney Chad Silver, founder of Silver Tax Group, and this is what we do every day.

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