- FBAR goes to FinCEN at $10,000; Form 8938 goes to the IRS at much higher thresholds.
- They overlap but don’t replace each other — many expats must file both.
- 8938 covers some assets FBAR doesn’t (like directly held foreign stock), and vice versa.
Two forms, one purpose — making foreign wealth visible to Washington — and endless confusion between them. FBAR came from the Bank Secrecy Act; Form 8938 came from FATCA. Filing one does not satisfy the other.
Side by Side
| FBAR (FinCEN 114) | Form 8938 (FATCA) | |
|---|---|---|
| Filed with | FinCEN, separately online | IRS, attached to your 1040 |
| Threshold (living abroad) | $10,000 aggregate, any moment in the year | $200,000 year-end / $300,000 anytime (single); double if married filing jointly |
| Covers | Foreign financial accounts, incl. signature authority | Foreign financial assets — accounts plus directly held stock, bonds, and interests in foreign entities |
| Doesn’t cover | Directly held securities, real estate | Accounts you only have signature authority over; real estate held directly |
| Penalty floor | ~$10,000 per non-willful violation | $10,000, rising with continued failure |
Where People Get Caught
- Assuming one form covers both. They go to different agencies. Your tax preparer filing 8938 does not file your FBAR unless you ask.
- Signature authority. An employer account you can sign on goes on your FBAR — but not your 8938.
- Directly held investments. Foreign company shares held outside a brokerage account skip FBAR but land on 8938.
- Thresholds in the wrong direction. The 8938 thresholds for expats are far higher than for US residents — many expats need FBAR but not 8938.
What To Do If You’ve Missed Either
Don’t backfile quietly. If your returns were otherwise correct, the Delinquent FBAR Submission Procedures typically resolve missed FBARs without penalty. If income was unreported too, the Streamlined Procedures cover both problems at once. The right route depends on the details — which is exactly what an assessment is for.
Disclaimer: This article is general information, not tax, legal, or financial advice. Thresholds change — confirm current figures with official sources or a qualified professional. eTaxNexus is a digital brand of Mega Commercial Enterprises Limited, registered in Ireland, Company Number 726999.
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