Form 8938 vs FBAR: Complete Comparison & Filing Guide
Do you have bank accounts or investments overseas and aren’t sure which forms to file — Form 8938 or FBAR? You’re not alone. Many U.S. taxpayers are confused about these two foreign reporting forms. Though they often cover similar information, they serve different purposes, are filed with different agencies, and have separate penalties for non-compliance.
At Elmira Tax, our team helps clients navigate complex international reporting rules with precision and care. This guide breaks down everything you need to know — who must file, what to report, and how to stay compliant with both the IRS and FinCEN.
What Are Form 8938 and FBAR?
Understand the purpose and differences between Form 8938 and FBAR (FinCEN Form 114) — and why both may apply to you.
What is Form 8938?
Form 8938 is part of the Foreign Account Tax Compliance Act (FATCA). It’s used to report specified foreign financial assets when their total value exceeds certain thresholds as outlined below. It’s filed with your annual Form 1040 tax return and reviewed by the IRS.
Foreign assets include bank accounts, investment accounts, stock ownership, foreign pension plans, or interests in foreign entities. The goal is to prevent offshore tax evasion and improve transparency.
What is FBAR (FinCEN Form 114)?
The Foreign Bank Account Report (FBAR), officially known as FinCEN Form 114, is filed electronically through the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury. It reports foreign financial accounts when their total value exceeds $10,000 at any point in the year.
FBAR focuses on accounts, not ownership of assets — even if the taxpayer doesn’t directly own the funds but has signature authority.
Legal Basis & Purpose
Form 8938 arises under FATCA (Internal Revenue Code §6038D), enforced by the IRS.
FBAR originates under the Bank Secrecy Act (BSA), enforced by FinCEN.
In essence, Form 8938 supports tax enforcement, while FBAR promotes financial transparency and anti-money-laundering compliance.
Who Must File: Eligibility & Filing Thresholds
Learn which taxpayers must file each form and how thresholds differ based on residency, filing status, and account types.
Specified Individuals & Entities (Form 8938)
Form 8938 applies to specified individuals — U.S. citizens, resident aliens, and certain domestic entities that hold specified foreign financial assets exceeding the thresholds below:
Filing Status Living in the U.S. Living Abroad
Married Filing Jointly > $100,000 on last day / $150,000 anytime > $400,000 on last day / $600,000 anytime
All other filing status > $50,000 on last day / $75,000 anytime > $200,000 on last day / $300,000 anytime
Domestic corporations, partnerships, or trusts may also need to file if they hold reportable foreign assets.
U.S. Persons & Signature Authority (FBAR)
The FBAR must be filed by any U.S. person — including citizens, residents, and entities — with a financial interest in OR signature authority over foreign financial accounts exceeding $10,000 in aggregate at any point during the year.
Even if you don’t own the account but can sign on it (e.g., power of attorney for a relative abroad), you may still need to file.
Comparative Threshold Table: Form 8938 vs FBAR
Criteria Form 8938 FBAR
Agency IRS FinCEN (Treasury)
Filing With Form 1040 BSA E-Filing System
Minimum Threshold $50,000–$600,000 (varies) $10,000 (aggregate)
Type of Assets Financial assets & interests Financial accounts
Due Date With tax return April 15 (auto extension to Oct 15)
Edge Cases
Married Filing Separately: Each spouse applies their own threshold.
Non-Resident Aliens: Only file if treated as resident under tax rules.
Green Card Holders: Must file both if thresholds are met, even if living abroad.
What You Must Report: Asset & Account Types
Discover which accounts, investments, and holdings you must report — and which may be exempt from reporting.
Foreign Financial Accounts (Overlap)
Both Form 8938 and FBAR cover foreign bank and brokerage accounts. If you hold a checking account in Canada or an investment account in Singapore, both forms may apply. Always list the highest balance or value during the tax year.
Non-Account Foreign Assets (Form 8938 Only)
Form 8938 also covers non-account assets such as:
Stock or securities issued by foreign corporations
Foreign partnership interests
Foreign mutual funds
Foreign pension plans and life insurance with cash value
These items are not reported on FBAR.
When FBAR Applies Without Ownership
FBAR requires reporting of accounts you don’t own but control — for example, as a corporate officer or trustee with signature authority. Even without personal benefit, FinCEN demands disclosure to prevent concealment of assets.
Exclusions & Reporting Exceptions
U.S. accounts held at domestic branches of foreign banks are not foreign.
Certain retirement accounts (like 401(k)s) are excluded.
If all assets are already reported on Form 3520, 5471, or 8621, the IRS may not require duplicate disclosure under Form 8938.
When & How to File: Procedures & Deadlines
Avoid missed deadlines and penalties by knowing exactly when and how to file both Form 8938 and FBAR.
Filing Form 8938
Attach Form 8938 to your Form 1040 and file it by April 15 (or October 15 if you file an extension). If you file late, penalties apply even if no tax is due.
You must include details like the institution name, account number, maximum value, and the type of asset.
Filing FBAR
FBARs are filed electronically using FinCEN’s BSA E-Filing System. The deadline is April 15, with an automatic extension to October 15.
Make sure to aggregate all foreign accounts for the year to determine whether you exceed the $10,000 threshold at any point during the year.
Amending a Previously Filed 8938 or FBAR
If you discover an omission, promptly file an amended form:
For Form 8938, file a Form 1040-X with an updated 8938 attached.
For FBAR, log into the BSA portal, check “Amended” on the form, and resubmit.
Common Mistakes & How to Avoid Them
Forgetting joint accounts or signature authority
Reporting year-end balances instead of maximum values
Mixing up FATCA and FBAR thresholds
Keep detailed records and consult a tax CPA before filing.
Reporting Joint and Separate Bank Accounts (Married Couples)
For FBAR purposes, each spouse must file separately if both have a financial interest in or signature authority over foreign accounts, unless one spouse qualifies to file jointly under a specific exception.
Joint Accounts: Each spouse reports the entire value of the joint account on their respective FBAR.
Separate Accounts: Each spouse reports only the accounts they own or have authority over.
Exception: If ALL foreign accounts are jointly owned and the spouses file a jointly signed FBAR (FinCEN Form 114a) authorizing one spouse to file for both, only one filing is required.
Always maintain documentation showing ownership percentages and signatory rights to avoid mismatched reporting during an IRS or FinCEN review.
Penalties, Enforcement & Audit Risks
Understand what’s at stake if you miss reporting — and how to restore compliance safely.
FBAR Non-Compliance Penalties
Non-willful: Up to $10,000 per violation
Willful: The greater of $100,000 or 50% of the account value per year
Criminal penalties may apply for intentional concealment.
Form 8938 Penalties
Failing to file Form 8938 can result in a $10,000 penalty, plus up to $50,000 for continued failure after IRS notice. Underreporting income tied to undisclosed foreign assets may trigger a 40% understatement penalty.
IRS & FinCEN Enforcement Trends
The IRS and FinCEN share data across international networks. With increasing FATCA compliance agreements, undisclosed accounts are easier to detect.
Relief Programs & Compliance Pathways
Taxpayers who missed past filings may qualify for:
Streamlined Filing Compliance Procedures
Delinquent FBAR Submission Procedures
Voluntary Disclosure Practice
These programs can help you correct filings with reduced or no penalties when done properly.
Coordinating Form 8938 and FBAR: Filing Both & Overlaps
Learn when both filings are required and how to avoid duplicate or missed reporting.
When Both Must Be Filed
If you have foreign accounts exceeding $10,000 and your total foreign assets exceed FATCA thresholds, you must file both forms. The same account may appear on both, but each agency requires its own report.
How to Avoid Double or Under-Reporting
Keep a consolidated spreadsheet listing:
Each account
Maximum value
Institution name
Country and account number
Use this master record to complete both forms consistently.
Sample Scenarios
Example A: A U.S. citizen in California holds $15,000 in a Japanese bank — must file FBAR only.
Example B: A married couple living abroad holds $250,000 in joint foreign investments — must file both Form 8938 and FBAR.
If One Form Covers Assets the Other Does Not
For example, a foreign stock certificate not held in a financial account appears only on Form 8938. Conversely, a joint account where you have signature authority but no ownership goes only on FBAR.
Practical Tips, Checklists & Examples
See how the rules apply in real-life situations, plus checklists and FAQs to simplify your filing process.
Example 1: U.S. Resident with Overseas Accounts
Jane, a U.S. resident, holds $20,000 in a savings account in France and $40,000 in a foreign mutual fund.
FBAR: Yes (aggregate > $10,000)
Form 8938: Yes (assets > $50,000)
Example 2: Married Couple Living Abroad
A couple living in Germany holds $350,000 in joint foreign investments.
FBAR: Yes (>$10,000)
Form 8938: Yes (>$400,000 threshold abroad)
Pre-Filing Checklist
Bank and investment statements (highest balances)
Ownership and account authority records
Exchange rate used for valuation
Prior year filings (for consistency)
FAQs: Unusual Cases
Inherited foreign property? Only report if it generates income or is held in an account.
Cryptocurrency on foreign exchanges? Currently not on FBAR, but may be required under future FATCA guidance.
Foreign life insurance? If it has a cash value, it belongs on Form 8938.
Next Steps & Expert Help
Unsure which forms apply to you? Our CPAs can help you determine your exact obligations and keep your filings penalty-free.
When to Consult a Tax Professional
If you hold any foreign accounts or investments, or recently discovered unreported assets, speak with a qualified tax CPA. The rules are complex, and penalties are steep — but timely professional advice can protect you.
Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Consult a licensed tax professional for personalized guidance.
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