Form 8938 vs. FBAR: Understanding the Difference
- Form 8938 and the FBAR are two separate reporting requirements that frequently apply to the same person — filing one does not satisfy the other
- The FBAR has a much lower threshold ($10,000 aggregate) and captures most expat filers; Form 8938 thresholds are higher and vary by filing status and residency
- The FBAR is filed with FinCEN, separately from your tax return; Form 8938 is attached to your Form 1040
- Penalties for non-filing are significant under both regimes and are assessed independently
U.S. expats with foreign bank accounts often learn about FBAR first — typically from their bank’s FATCA compliance process — and assume that’s the only foreign asset reporting they need to worry about. Form 8938 is less well known but applies to many of the same people and covers a broader range of assets.
The two filings exist under different laws, are submitted to different agencies, cover somewhat different assets, and carry separate penalty regimes. Understanding which applies to you — and whether you need both — is one of the more common questions expat filers have going into tax season.
| Form 8938 | FBAR (FinCEN 114) | |
|---|---|---|
| Filed with | IRS (attached to Form 1040) | FinCEN (separately from tax return) |
| Who must file | Specified individuals and certain domestic entities | U.S. persons with financial interest in or signature authority over foreign accounts |
| Threshold single, living abroad | $200,000 at year end or $300,000 at any point | $10,000 aggregate at any point |
| Threshold married filing jointly, living abroad | $400,000 at year end or $600,000 at any point | $10,000 aggregate at any point |
| Threshold living in the U.S. | $50,000 at year end or $75,000 at any point | $10,000 aggregate at any point |
| What’s covered | Foreign financial accounts, foreign stocks and securities, foreign partnership interests, foreign mutual funds, certain foreign insurance and annuity contracts, interests in foreign entities | Foreign bank accounts, securities accounts, mutual funds, insurance policies with cash value, annuity contracts, other accounts at foreign financial institutions |
| Signature authority | No | Yes — accounts you don’t own but have authority over |
| Due date | Same as your tax return, including extensions | April 15, automatic extension to October 15 |
| Filing method | Part of your Form 1040 | Electronically via BSA E-Filing System only |
| Non-filing penalty | $10,000, up to $50,000 for continued failure | Up to $10,000 (non-willful) / up to $100,000 or 50% of account balance (willful) |
The FBAR threshold is much lower. At $10,000 aggregate across all foreign accounts at any point during the year, the FBAR captures the vast majority of expat filers who maintain local bank accounts abroad. Form 8938 thresholds are significantly higher and primarily affect filers with substantial foreign investment assets in addition to ordinary bank accounts.
Form 8938 covers more asset types. The FBAR is focused on accounts at foreign financial institutions. Form 8938 captures a broader range including foreign stocks and securities held outside a financial account, foreign partnership interests, and interests in foreign entities — assets that may not trigger an FBAR at all.
Signature authority matters for FBAR only. If you have signing authority over a foreign account you don’t own — a foreign employer’s bank account, for example — that may trigger an FBAR obligation even with no personal ownership interest. Form 8938 does not have an equivalent signature authority provision.
They are filed in completely different places. The FBAR goes to FinCEN electronically and is not part of your tax return. Form 8938 is attached to your Form 1040 and filed with the IRS. Missing one while filing the other is a common oversight.
If you meet the threshold for both, yes — they are not interchangeable and filing one does not satisfy the other. The most common scenario: you have foreign bank accounts exceeding $10,000 aggregate (FBAR required), and those same accounts plus other foreign assets push you over the Form 8938 threshold for your filing status (Form 8938 also required).
Both filings are handled as part of AET’s tax preparation process where applicable. Your intake appointment will identify which reporting obligations apply to your situation.
Frequently Asked Questions
If your foreign financial assets exceed the Form 8938 threshold for your filing status and residency, yes. Filing the FBAR satisfies only the FinCEN reporting obligation — it has no bearing on your Form 8938 requirement.
Only if the value of those accounts exceeds the applicable Form 8938 threshold. For most expats with ordinary foreign bank accounts and no significant foreign investment assets, the FBAR is the relevant filing and Form 8938 may not apply.
The Streamlined Foreign Offshore Procedures may allow you to come into compliance without penalties if your non-filing was non-willful. See our FBAR Resource Guide for more detail, or book a consultation to assess your specific situation.
Yes — foreign financial accounts held at foreign financial institutions typically appear on both if both thresholds are met. However, assets already reported on other information returns (Form 3520, Form 5471) generally do not need to be separately listed on Form 8938. Your Tax Specialist will apply the duplication rules correctly.
