What's the difference between FBAR and FATCA?

FBAR and FATCA are two separate reporting requirements that both involve disclosing foreign financial assets, but they differ in important ways. Many US expats need to file both, and understanding the distinctions is crucial for compliance.

FBAR (FinCEN Form 114) is administered by FinCEN (part of the Treasury Department), not the IRS. It has a $10,000 aggregate account balance threshold that applies to all US persons. It covers foreign financial accounts only — bank accounts, securities accounts, and certain other accounts. It is filed electronically through the BSA E-Filing System, separate from your tax return. The deadline is April 15 with an automatic extension to October 15.

FATCA Form 8938 is administered by the IRS and filed with your tax return. The thresholds are much higher — for expats, $200,000 on the last day of the year or $300,000 at any time (single filers). It covers a broader range of assets than FBAR, including foreign financial accounts plus foreign stock, partnership interests, financial instruments, and interests in foreign entities. It follows your tax return deadline.

Key differences in scope: FBAR only covers accounts at foreign financial institutions. Form 8938 covers both accounts and non-account assets like directly held foreign stock or interests in foreign trusts. However, FBAR includes accounts where you have signature authority even without ownership, while Form 8938 generally only covers assets you own or have a beneficial interest in.

Penalties differ as well. FBAR penalties can be up to $16,536 per non-willful violation per account per year, or up to 50% of account balance for willful violations. Form 8938 penalties start at $10,000 and increase with continued non-compliance, plus tax-related penalties.

Importantly, filing one does not satisfy the requirement for the other. If you meet both thresholds, you must file both FBAR and Form 8938, even though some of the same accounts will appear on both forms. At Zenith Financial, we analyze your foreign asset profile to determine exactly which reporting requirements apply to you.