FBAR vs FATCA Form 8938: What's the Difference?

Different agencies, different thresholds, different forms

As an Enrolled Agent, I often see confusion among US taxpayers living abroad regarding which financial reporting forms they need to submit. Two key filings are the Foreign Bank Account Report (FBAR) and FATCA Form 8938. While both deal with foreign financial accounts, they serve distinct purposes under separate regulatory bodies. The FBAR is mandated by the Treasury Department's Financial Crimes Enforcement Network (FinCEN), while FATCA Form 8938 falls under IRS regulations. Each has its own threshold for who must file and what those thresholds are based on your total assets rather than just foreign accounts. For instance, if you have a balance of $10,000 or more in any foreign financial account at any point during the year, you may need to file an FBAR. On the other hand, FATCA Form 8938 requires reporting for US citizens with certain levels of total foreign financial assets, regardless of whether those accounts are bank accounts, stocks, bonds, or mutual funds.

Frequently Asked Questions

Do I need to file both FBAR and FATCA Form 8938?

Yes, if you meet the thresholds for each form based on your foreign financial assets or accounts, you must file both. Each has unique requirements that don't overlap completely.

What happens if I miss filing one of these forms?

Missing either an FBAR or FATCA Form 8938 can result in significant penalties ranging from thousands to millions of dollars depending on the severity and intent behind your non-compliance.

Can you help me understand my specific reporting obligations better?

Consulting with a tax professional who specializes in international tax compliance is highly recommended. They can provide tailored guidance based on your unique circumstances.

Related Reading

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• US Taxes for Americans in Costa Rica: FBAR, FEIE, Crypto & US LLCs (2026 Guide)

• US Taxes for Americans in Mexico City: FBAR, FEIE & Catching Up (2026 Guide)

Talk to an Enrolled Agent

This article is general information, not individual tax advice. If you want to talk through your specific situation, book your free 15-minute review, or call or text (323) 900-0305.