FBAR vs Form 8938: What Is the Difference?
FBAR (FinCEN Form 114) and IRS Form 8938 both report foreign financial assets, but they have different thresholds, filing requirements, and penalties. Learn which one you need to file — or whether you need both.
FBAR (FinCEN Form 114)
Filed with FinCEN
FBAR is filed electronically with the Financial Crimes Enforcement Network (FinCEN), not the IRS. It is an anti-money-laundering tool, not a tax form.
$10,000 aggregate threshold
You must file if the aggregate value of all your foreign financial accounts exceeded $10,000 at any time during the calendar year. This is a low threshold that catches almost every expat with more than one account.
Broader account coverage
FBAR covers bank accounts, securities accounts, and any other financial account where a foreign financial institution holds assets for your benefit.
Signature authority counts
You must file for accounts over which you have signature authority, even if you do not own the assets (e.g., business accounts, trust accounts).
Form 8938 (FATCA)
Filed with your tax return
Form 8938 is filed with your Form 1040 and is an IRS information return under the Foreign Account Tax Compliance Act (FATCA).
Higher thresholds
For taxpayers living abroad, the threshold is $200,000 at year-end or $300,000 at any time during the year (single; $400,000/$600,000 married filing jointly).
Broader asset coverage
Form 8938 covers not only foreign financial accounts but also foreign stock, foreign partnership interests, foreign trusts, foreign pension plans, and foreign real estate held through a foreign entity.
No signature authority rule
Form 8938 only covers assets you own or in which you have a beneficial interest. Signature authority alone does not trigger Form 8938.
Key Differences
| Aspect | FBAR (FinCEN Form 114) | Form 8938 (FATCA) |
|---|---|---|
| Filing authority | FinCEN (Treasury) | IRS |
| Threshold (single, abroad) | $10,000 aggregate | $200,000 year-end / $300,000 anytime |
| Threshold (married, abroad) | $10,000 aggregate | $400,000 year-end / $600,000 anytime |
| What to report | Foreign financial accounts | Specified foreign financial assets (accounts + investments + entities) |
| Signature authority | Must report | Not reportable |
| Filing deadline | April 15 (auto-extended to Oct 15) | Same as tax return (June 15 auto-ext for expats) |
| Penalty (non-willful) | $16,536 per form per year (post-Bittner) | $10,000 |
| Penalty (willful) | Greater of $165,353 or 50% of account balance | Up to $50,000 + 40% of underreported tax |
When to Choose FBAR
You file the FBAR if you have foreign bank accounts, securities accounts, or signature authority over accounts with an aggregate balance exceeding $10,000 at any time during the year. Almost every expat with more than one modest foreign account meets this threshold.
When to Choose Form 8938
You file Form 8938 if you are a specified individual with specified foreign financial assets exceeding the higher thresholds. If you have significant investments, foreign pensions, or business interests abroad, you likely need Form 8938 in addition to the FBAR.
Frequently Asked Questions
Do I need to file both FBAR and Form 8938?
Often yes. If your foreign financial accounts exceed $10,000, you must file FBAR. If your total specified foreign financial assets also exceed the Form 8938 thresholds ($200,000/$300,000 single abroad), you must file both. Many expats file FBAR only, many file both, and some file neither if they are below both thresholds.
Can the same account be reported on both forms?
Yes. The same foreign bank account can be reported on both FBAR and Form 8938 if both thresholds are met. However, the forms ask for different information. FBAR wants account numbers, bank addresses, and maximum balances. Form 8938 wants asset categories, income generated, and how the asset is held.
What happens if I file one but not the other?
If you are required to file both but only file one, you face penalties for the missing form. The IRS and FinCEN share information, so filing one form does not protect you from penalties for failing to file the other.
Does my foreign pension go on FBAR or Form 8938?
It depends. Foreign pension accounts are generally reported on the FBAR if the pension is a financial account. Form 8938 may also require reporting depending on the pension type and whether it is a specified foreign financial asset. Some employer-sponsored pensions are exempt from Form 8938 but still reportable on FBAR.