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FBAR vs. Form 8938: key differences, thresholds and filing rules
US expats with foreign financial accounts often need to file two separate reports with two different agencies: the FBAR with FinCEN and Form 8938 with the IRS.
The two forms overlap in places, but they cover different asset types, apply different dollar thresholds, and carry their own penalties. This guide breaks down every major difference so you can figure out which form applies to you – or whether you owe both.
What is FBAR (FinCEN Form 114)?
The FBAR – formally FinCEN Form 114 – is a report filed with the Financial Crimes Enforcement Network, not with the IRS.
You must file an FBAR if you are a US person and the combined value of all your foreign financial accounts exceeded $10,000 at any point during the calendar year.
“US person” includes citizens, resident aliens, trusts, estates, and domestic entities.
The FBAR covers bank accounts, securities accounts, mutual funds, and certain insurance policies with a cash value held at foreign financial institutions. It does not go on your tax return – it is filed separately through FinCEN’s BSA E-Filing system.
What is Form 8938?
Form 8938, the Statement of Specified Foreign Financial Assets, is an IRS form created under FATCA – the Foreign Account Tax Compliance Act.
You attach it to your federal income tax return when the total value of your specified foreign financial assets exceeds the threshold for your filing status and residency. The thresholds are much higher than the FBAR’s $10,000 – starting at $50,000 for single filers living in the US.
Form 8938 covers a broader set of assets than the FBAR: foreign bank accounts, securities, financial instruments, contracts with non-US persons, and interests in foreign entities.
It is part of your tax return and follows your return’s filing deadline and extensions.
FinCEN Form 114 vs. Form 8938: essential differences
The two forms serve different agencies, apply different thresholds, and cover different assets. Below is a side-by-side comparison of Form 8938 and FBAR that covers the main filing differences at a glance.
| FBAR – FinCEN Form 114 | Form 8938 | |
|---|---|---|
| Filed with | FinCEN via BSA E-Filing | IRS – attached to tax return |
| Legal authority | Bank Secrecy Act, 31 USC 5314 / 31 CFR 1010.350 | IRC 6038D, FATCA |
| Who files | US persons – citizens, residents, trusts, estates, domestic entities | Specified individuals and certain specified domestic entities |
| Threshold | $10,000 aggregate at any point in the year | Varies by filing status and residency: $50,000 – $600,000 |
| What is reported | Foreign financial accounts only | Foreign financial accounts plus securities, financial instruments, and interests in foreign entities |
| Signature authority | Triggers a separate filing obligation | Not applicable |
| Deadline | April 15, auto-extended to October 15 – no form needed | With tax return: April 15 or extended deadline |
| Penalties (non-willful) | Up to $16,536 per report (2025) | $10,000 per form, plus up to $50,000 continuation |
| Penalties (willful) | Greater of $165,353, as adjusted for 2025, or 50% of account balance | Form 8938 does not have a separate willful penalty tier. The $10,000 initial penalty and up to $50,000 in continuation penalties apply regardless of intent, unless you can show reasonable cause. If the underpayment is attributable to an undisclosed specified foreign financial asset, the accuracy-related penalty rises to 40% instead of the standard 20% under IRC 6662(j). A separate 75% fraud penalty applies instead if the underpayment is due to fraud. |
Who needs to file?
If the aggregate value of your foreign accounts exceeds $10,000 at any point during the year, you need to file the FBAR.
Whether you also need to file Form 8938 depends on a separate threshold that varies by your filing status and where you live – the FBAR and Form 8938 have different triggers.
FBAR trigger
The FBAR requirement kicks in when you have a financial interest in – or signature authority over – one or more foreign financial accounts whose combined peak value exceeds $10,000 during the calendar year.
You file even if you had no income from those accounts. There is no minimum-income or return-filing prerequisite – the FBAR stands on its own.
Form 8938 trigger
Form 8938 applies only if you file – or are required to file – a federal income tax return.
Your specified foreign financial assets must also exceed the applicable threshold for your filing status and where you live.
The asset base is broader than the FBAR – it includes interests in foreign entities, foreign-issued securities, and financial instruments held outside a financial institution.
When you file both
Many US expats meet both tests.
A married couple living abroad with $500,000 across several foreign bank accounts on December 31 will generally need to file the FBAR – above $10,000 – and Form 8938, since a year-end total of $500,000 exceeds the $400,000 year-end threshold for MFJ filers abroad. Filing one does not satisfy the other.
Which form do I file?
Start with three questions:
- Do you have foreign financial accounts? If the combined peak value exceeded $10,000 at any point during the year, file the FBAR.
- Are you filing a US tax return? If yes, check whether your specified foreign financial assets exceed the Form 8938 threshold for your filing status and residency.
- Do both conditions apply? File both. Neither form substitutes for the other.
If you have foreign financial assets that are not held in a financial account – such as stock in a foreign corporation or a note receivable from a foreign person – those count only toward the Form 8938 threshold, not the FBAR.
Reporting thresholds
The two forms set their filing bars very differently – one flat number versus a sliding scale based on where you live and how you file.
FBAR threshold
The FBAR threshold is a flat $10,000 aggregate across all foreign financial accounts, measured at each account’s peak value during the calendar year.
It does not change with filing status, residency, or income level. The amount is statutory and has never been adjusted for inflation.
Form 8938 thresholds
Form 8938 thresholds scale with your filing status and whether you qualify as living abroad.
| Filing status | Year-end threshold | Any-time threshold |
|---|---|---|
| Single, living in the US | $50,000 | $75,000 |
| Married filing jointly, living in the US | $100,000 | $150,000 |
| Single, living abroad | $200,000 | $300,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
You must file if the total value of your specified foreign financial assets exceeds either the year-end threshold on the last day of the tax year or the any-time threshold at any point during the year.
“Living abroad” for Form 8938 purposes means you meet the bona fide residence test or the physical presence test – the same tests used for the foreign earned income exclusion.
Key difference
The FBAR has one fixed threshold that covers everyone. Form 8938 has eight different trigger points depending on your filing status and where you live.
An expat filing jointly from abroad could carry up to $350,000 in foreign accounts all year and still owe only the FBAR – that stays below both the $400,000 year-end threshold and the $600,000 any-time threshold for that profile.
How to calculate your account value
Both forms require you to convert foreign-currency balances to US dollars, but they use different conversion rules.
FBAR conversion
For each foreign account, identify the highest balance during the calendar year and convert it to US dollars using the Treasury Reporting Rate of Exchange for December 31 of that year, or another verifiable year-end exchange rate if the Treasury rate for that date isn’t available.
If no Treasury rate is published for the currency, use another verifiable exchange rate and note which rate you applied.
Form 8938 conversion
For the year-end test, convert your December 31 balances using the exchange rate on December 31. For the any-time test, convert each asset’s peak value using the same December 31 exchange rate, even if the peak occurred earlier in the year or you sold the asset before year-end.
TFX client examples
Here are two scenarios we see regularly at TFX that show how the thresholds play out in practice.
Single filer living in Paris, three accounts:
| Account | Peak balance in local currency | US dollar equivalent at December 31, 2025, Treasury Reporting Rate of Exchange |
|---|---|---|
| French checking | EUR 45,000 | $52,875 |
| UK savings | GBP 5,000 | $6,733 |
| German brokerage | EUR 2,000 | $2,350 |
| Total | $61,958 |
- FBAR: required – aggregate exceeds $10,000.
- Form 8938: the peak total of $61,958 is below the $300,000 any-time threshold for a single filer abroad. The December 31 total can’t be higher than the peak, so it is also below the $200,000 year-end threshold. No Form 8938 needed.
NOTE! This example uses peak balances for illustration. For your own Form 8938 year-end test, use your account balances on December 31 – not your peak balances. For the any-time test, use your peak balances. Convert both at the December 31 exchange rate. The two tests can produce different dollar figures.
Married couple filing jointly from Tokyo, two accounts:
| Account | Peak balance in local currency | US dollar equivalent at December 31, 2025, Treasury Reporting Rate of Exchange |
|---|---|---|
| Japanese savings | JPY 50,000,000 | $319,137 |
| Singapore brokerage | SGD 120,000 | $93,347 |
| Total | $412,484 |
- FBAR: required – well above $10,000.
- Form 8938: The $412,484 peak is below the $600,000 any-time threshold for MFJ filers abroad, so the year-end test decides. If the couple’s December 31 balances total more than $400,000, they file Form 8938. If the year-end total is $400,000 or less, no Form 8938 is needed.
NOTE! This example uses peak balances for illustration. For your own Form 8938 year-end test, use your account balances on December 31 – not your peak balances. For the any-time test, use your peak balances. Convert both at the December 31 exchange rate. The two tests can produce different dollar figures.
What counts as reportable assets
Foreign bank account reporting on Form 8938 goes further than FBAR – it covers securities, financial instruments, and interests in foreign entities, not just bank and financial accounts.
Common reportable assets
Assets fall into three categories depending on which form covers them.
Reportable on both forms:
- Foreign bank accounts – checking, savings, and time deposits
- Foreign securities and brokerage accounts
- Mutual funds held at a foreign financial institution
- Certain insurance policies with a cash value
Reportable on Form 8938 only:
- Stock or securities issued by a non-US person, even if held outside a financial account
- Any financial instrument or contract with a non-US counterparty
- An interest in a foreign entity – partnership, corporation, trust, or estate
- Foreign hedge funds, private equity funds
Not reportable on either form:
- Foreign real estate held directly, not through an entity
- Foreign currency held physically, not in an account
- Precious metals or collectibles held directly
A note on foreign entities and real estate: If you own foreign real estate through a foreign entity, the real estate itself is not reportable – but the entity’s foreign financial accounts may trigger an FBAR obligation if you have a financial interest in or signature authority over those accounts. And your interest in the foreign entity itself is a specified foreign financial asset for Form 8938 purposes.
Cryptocurrency
FinCEN has not finalized a rule requiring FBAR reporting for virtual-currency-only foreign accounts. Under FinCEN Notice 2020-2, holders of accounts that contain only virtual currency are not currently required to file an FBAR.
Accounts that hold both fiat currency and virtual currency at a foreign financial institution are reportable – the fiat component brings the account within the existing definition.
Form 8938’s treatment of virtual currency is less settled. If you hold virtual currency in an account at a foreign financial institution, it may count as a specified foreign financial asset – check the current Form 8938 instructions, since the IRS hasn’t issued guidance specific to virtual currency here.
See our TFX guide to crypto FBAR requirements for a detailed breakdown of current reporting obligations.
Filing steps and deadlines
Each form has its own filing method, deadline, and extension rules.
How to file the FBAR
The FBAR is filed in four steps through FinCEN’s online system.
- Go to FinCEN’s BSA E-Filing system.
- Complete FinCEN Form 114 online – paper filing is not accepted.
- Report every foreign financial account – even those below $10,000 individually – if your aggregate exceeds the threshold.
- Submit by April 15. If you miss that date, the automatic extension to October 15 applies with no form required.
How to file Form 8938
Form 8938 goes with your tax return in three steps.
- Complete IRS Form 8938 and attach it to your federal income tax return – Form 1040 or 1040-NR.
- Report each specified foreign financial asset above the threshold.
- File by your return deadline: April 15 for most taxpayers, June 15 for qualifying US citizens and resident aliens whose tax home and abode are outside the United States and Puerto Rico on the regular due date, or October 15 with Form 4868.
Extensions of time to file your tax return automatically extend the Form 8938 deadline.
See our guide to tax extensions for details on how each extension works.
When both forms apply
Most US expats with substantial foreign holdings end up filing both. The FBAR and Form 8938 overlap on bank and brokerage accounts, but each has exclusive territory.
If you meet the $10,000 FBAR threshold and the Form 8938 threshold for your profile, you file both. Reporting the same account on one form does not excuse you from reporting it on the other.
The IRS publishes a side-by-side comparison of the two forms that spells out where they overlap and where they diverge.
Common mistakes to avoid
These are the six most common errors we see at TFX:
- Assuming one form covers both obligations. Filing the FBAR does not satisfy Form 8938, and vice versa. They go to different agencies.
- Using the wrong threshold test. The FBAR uses an aggregate peak-value test during the year. Form 8938 uses both a year-end test and an any-time test, and the numbers depend on your filing status.
- Forgetting signature authority. If you have signature authority over a foreign account – even one that belongs to your employer – it may need to go on your FBAR.
- Overlooking foreign pensions. A pension account at a foreign financial institution can be reportable on the FBAR if its value counts toward the $10,000 aggregate.
- Leaving off small accounts. Once the aggregate threshold is crossed, every foreign financial account must be reported on the FBAR – including ones worth only a few hundred dollars.
- Confusing valuation dates. The FBAR asks for the maximum value during the year. Form 8938 asks for both the maximum value and the year-end value.
See our guide to common FBAR mistakes and how to correct them for step-by-step filing corrections.
Penalties
Both forms carry separate penalty structures, and the penalties can stack if you owe both filings.
FBAR penalties
FBAR penalties depend on whether the violation was willful, and since the Supreme Court’s decision in Bittner v. United States (2023), non-willful penalties are assessed per report rather than per account.
- Non-willful: up to $16,536 per report (2025). No 2026 inflation adjustment was issued.
- Willful: the greater of $165,353 or 50% of the account balance at the time of the violation (2025), per violation.
- Criminal: up to $250,000 and/or five years of imprisonment under 31 USC 5322.
The Bittner ruling matters: before 2023, the IRS sometimes assessed non-willful penalties per unreported account, which could multiply the amount dramatically. Now, one unfiled FBAR for a given year can result in only one non-willful penalty for that year’s report.
Form 8938 penalties
Form 8938 penalties have five components that can add up quickly.
- Initial penalty: $10,000 for failure to file or for filing an incomplete form.
- Continuation penalty: an additional $10,000 for each 30-day period after 90 days past the IRS notice, capped at $50,000 in additional penalties.
- Maximum failure-to-file total: $60,000 – the $10,000 initial penalty plus up to $50,000 in continuation penalties.
- Accuracy-related penalty: 40% of any underpayment attributable to an undisclosed specified foreign financial asset, instead of the standard 20%, under IRC 6662(j).
- Extended assessment period: the IRS gets six years instead of three to audit your return when you omit more than $5,000 in income attributable to specified foreign financial assets. Per IRC section 6501(c)(8), if you never file Form 8938 at all, the assessment period for the related items stays open indefinitely, closing three years after you eventually do file it.
Missed a filing? What to do next
If you have unfiled FBARs or missing Forms 8938, four IRS and FinCEN programs may help you get back into compliance without the maximum penalties.
- Streamlined Foreign Offshore Procedures – SFOP: For US taxpayers living abroad who can certify that their failure to file was non-willful. You file three years of amended returns and six years of FBARs. If you qualify, the penalty is zero – no offshore penalty, no FBAR penalty. See our TFX guide to Streamlined Foreign Offshore Procedures for eligibility and steps.
- Streamlined Domestic Offshore Procedures – SDOP: For US-resident taxpayers with the same non-willful certification. Per the IRS SDOP FAQs, the offshore penalty is 5% of the highest aggregate year-end balance of the foreign financial assets that should have been reported, measured across the six-year FBAR period.
- Delinquent FBAR Submission Procedures: If you failed to file FBARs but are otherwise current with your tax returns, you can submit the late FBARs through BSA E-Filing with a statement explaining the reason. No penalties are assessed if the IRS has not already contacted you about the delinquency.
- Delinquent International Information Return Submission Procedures: Covers Forms 8938, 5471, 8865, 3520, and other international information returns filed late with a reasonable-cause statement.
For more on your options, see our overview of Streamlined Filing Compliance Procedures.
FAQ
The FBAR is filed with FinCEN and covers foreign financial accounts when their combined value exceeds $10,000. Form 8938 is filed with the IRS as part of your tax return and covers a broader set of foreign financial assets with higher, variable thresholds. Filing one does not satisfy the other.
No. The FBAR is filed electronically through FinCEN’s BSA E-Filing system, separate from your tax return. Form 8938 is attached to your Form 1040 and filed with the IRS.
You face separate penalties for each missed filing. An unfiled FBAR can draw a non-willful penalty of up to $16,536 per report (2025), and an unfiled Form 8938 starts at $10,000 with additional continuation penalties. If you underpay tax on income from an undisclosed foreign asset, a 40% accuracy-related penalty can also apply.
Often, yes. A foreign bank account that exceeds both thresholds must be reported on both the FBAR and Form 8938. The information you provide will overlap, but the two forms go to different agencies and neither substitutes for the other.
Yes. If you miss the April 15 deadline, the FBAR receives an automatic extension to October 15 with no additional form required.
Not currently for virtual-currency-only accounts. FinCEN Notice 2020-2 provides that no FBAR is required for foreign accounts holding only virtual currency.
Mixed accounts holding both fiat and crypto are still reportable. Form 8938 may still apply if the asset is held at a foreign financial institution and meets the threshold.
You qualify for the higher thresholds if you meet the bona fide residence test or the physical presence test – the same tests used for the foreign earned income exclusion under IRC 911.
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