Both FBAR and Form 8938 require reporting foreign financial accounts. But they go to different agencies, have different thresholds, and cover different assets. Many taxpayers need to file both. Here’s how to know which forms you need.
FBAR vs Form 8938: Quick Summary
- FBAR: $10,000 threshold, filed to FinCEN, covers foreign bank accounts
- Form 8938: $50,000-$600,000 threshold, filed to IRS, covers broader asset types
- Many taxpayers must file BOTH forms
- Different agencies, different rules, different penalties
- Overlap exists but forms are not duplicative
Do You Need Both?
Probably yes, if you have significant foreign accounts. The $10,000 FBAR threshold is much lower than Form 8938 thresholds. If you exceed the Form 8938 threshold, you almost certainly exceed the FBAR threshold too.
The reverse isn’t always true. You might need FBAR but not Form 8938 if your foreign accounts total between $10,000 and $50,000.
Table of Contents
Side-by-Side Comparison
| Feature | FBAR (FinCEN 114) | Form 8938 (FATCA) |
|---|---|---|
| Filed With | FinCEN (Treasury) | IRS |
| How to File | Electronic at BSA E-Filing | Attached to Form 1040 |
| Threshold (Single, US) | $10,000 aggregate | $50,000 year-end / $75,000 any time |
| Threshold (Single, Abroad) | $10,000 aggregate | $200,000 year-end / $300,000 any time |
| Threshold (MFJ, US) | $10,000 aggregate | $100,000 year-end / $150,000 any time |
| Threshold (MFJ, Abroad) | $10,000 aggregate | $400,000 year-end / $600,000 any time |
| Due Date | April 15 (auto ext to Oct 15) | With tax return (incl. extensions) |
| Penalty (Non-willful) | Up to $16,536/account | $10,000 |
| Penalty (Willful) | $165,353 or 50% of balance | $10,000 + up to $50,000 |
For complete FBAR requirements, see our Complete FBAR Filing Guide.
Different Agencies, Different Purposes
FBAR (FinCEN 114)
- Agency: FinCEN (Financial Crimes Enforcement Network)
- Part of: Treasury Department
- Purpose: Anti-money laundering, Bank Secrecy Act compliance
- Existed Since: 1970
FinCEN wants to track foreign account holdings to combat financial crimes and money laundering.
Form 8938 (FATCA)
- Agency: Internal Revenue Service
- Part of: FATCA (Foreign Account Tax Compliance Act)
- Purpose: Tax compliance, offshore tax evasion prevention
- Existed Since: 2011
The IRS wants to ensure taxpayers report income from foreign financial assets and pay applicable taxes.
Threshold Differences Explained
FBAR uses one simple threshold: $10,000 aggregate value of all foreign accounts at any point during the year. It doesn’t matter if you’re single or married, living in the US or abroad.
Form 8938 is more complex. Thresholds depend on your filing status and where you live:
| Filing Status & Residence | Year-End Value | Any Time During Year |
|---|---|---|
| Single, living in US | $50,000 | $75,000 |
| Married Filing Jointly, living in US | $100,000 | $150,000 |
| Single, living abroad | $200,000 | $300,000 |
| Married Filing Jointly, living abroad | $400,000 | $600,000 |
“Living abroad” means meeting the bona fide residence test or physical presence test for the foreign earned income exclusion.
Learn more about who must file in our guide: Who Needs to File FBAR.
What Assets Are Covered
| Asset Type | FBAR | Form 8938 |
|---|---|---|
| Foreign bank accounts | Yes | Yes |
| Foreign securities accounts | Yes | Yes |
| Foreign mutual funds | Yes | Yes |
| Foreign stock held directly (not in account) | No | Yes |
| Foreign partnership interests | No | Yes |
| Foreign trust interests | No | Yes |
| Foreign life insurance (cash value) | Yes | Yes |
| Foreign pension plans | Usually yes | Sometimes |
| Accounts at US branch of foreign bank | No | Yes |
| Accounts at foreign branch of US bank | Yes | No |
| Signature authority accounts (you don’t own) | Yes | No |
Key Difference: Form 8938 Covers More Asset Types Form 8938 covers foreign stock, partnership interests, and trust interests that aren’t held in a financial account. FBAR is limited to financial accounts. But FBAR picks up accounts you have signature authority over, which Form 8938 doesn’t.
Deadline Differences
FBAR has its own deadline separate from your tax return:
- FBAR: April 15 with automatic extension to October 15 (no form required)
- Form 8938: Due with your tax return, including any extensions
If you extend your tax return to October 15, both FBAR and Form 8938 would be due the same day. But they’re filed separately through different systems.
For deadline details, see FBAR Deadline.
Penalty Comparison
FBAR penalties are generally harsher, especially for willful violations:
| Violation | FBAR Penalty | Form 8938 Penalty |
|---|---|---|
| Non-willful failure to file | Up to $16,536 per account, per year | $10,000 |
| Willful failure to file | $165,353 or 50% of account balance (whichever is greater), per account | $10,000 + up to $50,000 for continued non-filing |
| Criminal penalties | Up to $500,000 and/or 5 years prison | Fraud penalties under IRC |
FBAR penalties apply per account. Multiple accounts multiply the exposure. Form 8938 penalties are per form.
For complete penalty information and relief options, see FBAR Penalties & Relief.
Which Forms Do You Need?
Decision Tree
Step 1: Do you have foreign financial accounts?
- No → Neither form required for accounts (but check Form 8938 for other foreign assets)
- Yes → Continue to Step 2
Step 2: Did aggregate account value exceed $10,000 at any point?
- No → FBAR not required. Check Form 8938 thresholds.
- Yes → FBAR is required. Continue to Step 3
Step 3: Do total foreign financial assets exceed Form 8938 threshold for your situation?
- No → File FBAR only
- Yes → File BOTH FBAR and Form 8938
Common Mistakes to Avoid
- Assuming one form covers both requirements: Filing Form 8938 does not satisfy FBAR. They’re separate requirements.
- Missing FBAR because your preparer only filed Form 8938: Many tax preparers focus on tax forms and forget FBAR goes to a different agency.
- Using the $50,000 threshold for FBAR: FBAR is $10,000, not $50,000. That’s a common confusion with Form 8938.
- Not reporting signature authority accounts on FBAR: If you can sign on an account you don’t own, it goes on your FBAR.
- Thinking you only file one or the other: Most people with substantial foreign accounts need both.
For foreign partnership interests, you may also need Form 8865. For foreign corporation ownership, see our Form 5471 Guide.
Frequently Asked Questions
What is the difference between FBAR and Form 8938?
FBAR (FinCEN 114) is filed with FinCEN and has a $10,000 threshold for foreign bank accounts. Form 8938 is filed with the IRS as part of your tax return and has higher thresholds ($50,000-$600,000) covering a broader range of foreign financial assets.
Do I need to file both FBAR and Form 8938?
Many taxpayers must file both. FBAR and Form 8938 have different thresholds and serve different agencies. If you meet the thresholds for both, you file both. The forms are not duplicative even though some accounts may appear on each.
Which has lower threshold, FBAR or Form 8938?
FBAR has the lower threshold at $10,000 aggregate value of all foreign financial accounts. Form 8938 thresholds start at $50,000 for single filers living in the US and go up to $600,000 for married couples living abroad.
What is FATCA and how does it relate to FBAR?
FATCA (Foreign Account Tax Compliance Act) created Form 8938 for reporting foreign financial assets to the IRS. FBAR predates FATCA and reports to FinCEN (Treasury). They serve different purposes and have different rules, though some accounts are reported on both.
Can I file FBAR and Form 8938 together?
No. FBAR is filed separately through the BSA E-Filing System at FinCEN. Form 8938 is attached to your Form 1040 and filed with the IRS. They go to different agencies through different systems.
What if I filed Form 8938 but forgot FBAR?
Filing Form 8938 does not satisfy your FBAR requirement. If you meet the FBAR threshold, you must file FBAR separately. Late FBAR filing may qualify for Delinquent FBAR Submission Procedures, which often result in no penalties.
Related FBAR Guides
- Complete FBAR Filing Guide
- FBAR Deadline
- FBAR Penalties & Relief
- Delinquent FBAR Filing
- FBAR Exchange Rates
- Who Needs to File FBAR
- Form 8865 Guide
- International Tax Services
Confused About Which Forms You Need?
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This content is for informational purposes only and does not constitute tax, legal, or accounting advice. Every situation is different. Consult with a qualified professional regarding your specific circumstances.
Official Sources: IRS Comparison of Form 8938 and FBAR Requirements