Form 8938 (FATCA) vs FBAR: What US Persons Abroad Must Report

Form 8938 FATCA vs FBAR is the difference between two overlapping US foreign-asset reports. The FBAR (FinCEN Form 114) reports foreign financial accounts to the Treasury; Form 8938 reports a broader set of specified foreign assets to the IRS with your return. Many US persons abroad must file both.

Key takeaways

• Two reports, two agencies. The FBAR goes to FinCEN (US Treasury); Form 8938 goes to the IRS. Filing one never satisfies the other.
• Different scope. The FBAR covers foreign financial accounts only. Form 8938 (FATCA) reaches a wider set of specified foreign financial assets.
• Different thresholds. The FBAR uses a low, flat aggregate account threshold. Form 8938 uses higher thresholds that vary by filing status and by whether you live in the US or abroad.
• Overlap is normal. Because the tests differ, many Americans abroad must file both in the same year — and each is assessed on its own facts.
• If you are already behind, our missed FBAR guidance and a licensed professional can map the cleanest route back.

Form 8938 FATCA vs FBAR: why there are two reports at all

The question we hear most from US persons abroad is why one country needs two separate foreign-asset filings. The answer is history. The FBAR grew out of anti-money-laundering law — the Bank Secrecy Act — and is a Treasury report about the existence and value of foreign accounts. Form 8938 is much newer: it was created by the Foreign Account Tax Compliance Act (FATCA) and is an IRS report attached to your income tax return, aimed at a broader range of offshore assets, not just accounts.

So the Form 8938 FATCA vs FBAR distinction is not a duplication to be annoyed by — it is two different laws, administered by two different bureaus, asking two overlapping-but-different questions. That is precisely why one filing cannot stand in for the other.

Who has to file each one?

Both reports apply to US persons — US citizens and green-card holders wherever they live, US resident aliens, and, for the FBAR, US entities such as corporations, partnerships and trusts. Two practical differences matter:

• Signature authority. The FBAR can be triggered by signature or other authority over an account you do not even own — a common trap for company officers and anyone who can move money in a family or employer account. Form 8938 is generally concerned with assets in which you hold a financial interest.
• A return is required for 8938. Form 8938 is part of your Form 1040, so it is relevant when you have a US filing obligation. The FBAR is a standalone Treasury filing that exists independently of whether you owe any tax.

If you are an American in Dubai, London or anywhere else with local accounts, investments or an interest in a foreign company, it is entirely possible to be inside the net for one report, the other, or both.

What does each report actually cover?

This is where the Form 8938 FATCA vs FBAR comparison earns its keep. The FBAR covers foreign financial accounts — foreign bank and savings accounts, most foreign brokerage accounts, many foreign pensions and certain cash-value insurance policies.

Form 8938 covers a wider category — specified foreign financial assets. That includes those same foreign accounts, plus assets the FBAR does not reach, such as foreign stock or securities held outside a custodial account, interests in foreign entities, and certain foreign financial instruments and contracts. Put simply: most things on your FBAR will also be relevant to Form 8938, but Form 8938 can pull in assets that never appear on an FBAR at all.

Where are they filed — and why it catches people out

The filing channels are completely separate, which is the single most common source of expat error:

• The FBAR (FinCEN Form 114) is filed electronically with FinCEN through the BSA E-Filing System. It is not sent to the IRS and is not attached to your tax return.
• Form 8938 is filed with the IRS, attached to your Form 1040.

Because of this split, filing your tax return does not file your FBAR, and filing your FBAR does not file your Form 8938. Each has to be handled on its own track. Our companion piece on the FBAR filing deadline 2026 walks through the FBAR's April-to-October timing in detail.

FBAR vs Form 8938: side-by-side comparison

| Feature | FBAR (FinCEN Form 114) | Form 8938 (FATCA) |

|---|---|---|

| Governing law | Bank Secrecy Act | Foreign Account Tax Compliance Act (FATCA) |

| Filed with | FinCEN (US Treasury) | IRS |

| How it's filed | Separately, via BSA E-Filing System | Attached to your Form 1040 |

| What it covers | Foreign financial accounts only | Broader specified foreign financial assets |

| Signature authority | Can trigger a filing on its own | Generally focused on a financial interest |

| Threshold | Low, flat aggregate figure — same for everyone | Higher figures that vary by filing status and US vs abroad |

| Depends on a tax return? | No — standalone Treasury filing | Yes — part of your income tax return |

Specific dollar thresholds change and differ by situation — always confirm the current figures against IRS and FinCEN guidance before you rely on them.

Do the thresholds really differ that much?

Yes — and this is why the two reports so often part ways. The FBAR uses a single, comparatively low aggregate threshold: add up the highest balances of all your foreign accounts, and if the combined peak crosses that line at any point in the year, you file. It is the same figure for everyone.

Form 8938 works differently. Its thresholds are higher, and they step up depending on your filing status (single versus married filing jointly) and, critically, on whether you live in the US or abroad — the overseas thresholds are more generous. The result: someone can be over the FBAR line but under Form 8938, or the reverse. This is exactly why you cannot reason from one report to the other and must test each separately. Because these figures are adjusted and easy to misremember, we deliberately do not quote numbers here — book a consultation and we will apply the current thresholds to your actual accounts.

What are the penalties for getting it wrong?

Both regimes have teeth. FBAR penalties escalate sharply where a failure is treated as wilful, while even non-wilful failures carry exposure. Form 8938 has its own penalty structure for non-filing, and — importantly — an unfiled or incomplete Form 8938 can keep the statute of limitations open on your entire return, not just the form. None of this is a reason to panic; it is a reason to fix things in the right order.

If you have missed one or both reports, do not quietly file random back years. Eligible taxpayers who fell behind non-wilfully often use the IRS Streamlined Foreign Offshore Procedures, which can bring returns and back FBARs current, frequently penalty-free. Where the wider tax return is also behind, our missed US tax returns guide covers the full expat catch-up picture. The disclosure route you choose materially affects your exposure — get it advised first.

Getting Form 8938 and the FBAR right

For most US persons abroad the practical takeaway is straightforward: treat the Form 8938 FATCA vs FBAR question as two checks, not one. Run the FBAR account test, run the Form 8938 specified-asset test, and file whichever — or both — you cross. Because the definitions have edges and the thresholds shift, this is an area where a review pays for itself. Every US filing we prepare, FBARs and Form 8938 included, is reviewed and signed off by a licensed CPA or IRS Enrolled Agent before it goes anywhere.

Official sources

• IRS — Comparison of Form 8938 and FBAR Requirements
• IRS — Do I need to file Form 8938, Statement of Specified Foreign Financial Assets?
• FinCEN — BSA E-Filing System

Reviewed by a licensed CPA / Enrolled Agent. Last updated: 12 August 2026.

Frequently asked questions

What is the difference between Form 8938 and the FBAR?

They are two separate reports. The FBAR (FinCEN Form 114) reports foreign financial accounts to the US Treasury. Form 8938 reports a broader set of specified foreign financial assets to the IRS as part of your income tax return. They overlap on accounts but are not interchangeable, and one does not satisfy the other.

Do I have to file both Form 8938 and the FBAR?

Often, yes. The two reports have different filers, different asset definitions and different thresholds, so many US persons abroad cross both lines in the same year. Others cross only one. Because the tests differ, you assess each report on its own rather than assuming one answers for the other.

Which foreign assets does Form 8938 cover that the FBAR does not?

Form 8938 reaches beyond accounts into a wider range of specified foreign financial assets — for example, foreign stock or securities held outside an account, interests in foreign entities and certain foreign financial instruments. The FBAR is limited to foreign financial accounts. Confirm how a specific asset is treated with a licensed professional.

Where is each form filed?

The FBAR is filed electronically with FinCEN through the BSA E-Filing System, separately from your tax return. Form 8938 is filed with the IRS, attached to your Form 1040. That is why filing your tax return never satisfies the FBAR, and filing the FBAR never satisfies Form 8938.

Do the reporting thresholds differ between the two?

Yes, substantially. The FBAR uses a single, comparatively low aggregate account threshold that is the same for everyone. Form 8938 uses higher thresholds that vary by filing status and by whether you live in the US or abroad. Always check the current figures against IRS guidance before relying on them.

What are the penalties for not filing Form 8938 or the FBAR?

Both carry significant penalties, and wilful FBAR failures can be especially severe. Form 8938 non-filing also carries its own penalty regime and can keep the statute of limitations open on your whole return. If you are behind, speak to a licensed professional before filing back years — the disclosure route matters.