FBAR vs FATCA
Understanding Your Foreign Account Reporting Requirements
Report of Foreign Bank and Financial Accounts filed with FinCEN
Advantages
- Lower reporting threshold ($10,000)
- Filed electronically through FinCEN BSA E-Filing
- Automatic extension to October 15
- No cost to file
Disadvantages
- Severe penalties for non-compliance (up to $10,000 per violation)
- Willful violations can result in criminal penalties
- Must report accounts even with signature authority only
Best For
- • Anyone with foreign accounts exceeding $10,000 at any point
- • US citizens and residents with signature authority over foreign accounts
Statement of Specified Foreign Financial Assets filed with IRS
Advantages
- Higher thresholds for filing requirement
- Filed with your tax return (one process)
- Covers broader range of assets including stocks, partnerships
Disadvantages
- More complex requirements
- Penalties of $10,000 plus additional penalties for continued non-filing
- Must report foreign assets not covered by FBAR
Best For
- • US taxpayers with higher foreign asset values
- • Those with foreign stocks, bonds, or partnership interests
Quick Comparison
| Factor | FBAR (FinCEN Form 114) | FATCA (Form 8938) |
|---|---|---|
| Filed With | FinCEN (Treasury) | IRS (with tax return) |
| Threshold (Abroad, Single) | $10,000 | $200,000 |
| Threshold (Abroad, Married) | $10,000 | $400,000 |
| Deadline | April 15 (auto-ext to Oct 15) | With tax return |
| Penalty (Non-Willful) | Up to $10,000/violation | $10,000 + $10,000/month |
Our Verdict
Most expats need to file BOTH forms - they have different thresholds and cover different (but overlapping) assets. FBAR has a lower threshold and more common requirement.
Choose FBAR (FinCEN Form 114) if:
File FBAR if your foreign accounts exceeded $10,000 at any time during the year.
Choose FATCA (Form 8938) if:
File Form 8938 if your foreign assets exceed $200,000 (single) or $400,000 (married) living abroad.
Frequently Asked Questions
Related Comparisons
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