Two forms, two agencies, two thresholds
If you have money outside the United States, you will hear about two reporting requirements: the FBAR (FinCEN Form 114) and Form 8938 (Statement of Specified Foreign Financial Assets, the form created under FATCA). They ask similar questions, so people often assume one replaces the other. It doesn't.
- The FBAR is filed electronically with FinCEN, a bureau of the Treasury Department — not with the IRS and not with your tax return.
- Form 8938 is attached to your income tax return and filed with the IRS.
You must check each requirement on its own. Many people with foreign accounts file both; some file only an FBAR; some file neither.
Side-by-side comparison
| FBAR (FinCEN Form 114) | Form 8938 | |
|---|---|---|
| Who files | U.S. persons: citizens, resident aliens, and domestic entities, trusts, and estates | Specified individuals (U.S. citizens, resident aliens, and certain nonresident aliens) and specified domestic entities |
| Threshold | Foreign financial accounts total more than $10,000 at any time during the calendar year | Depends on filing status and where you live — see the next table |
| What is reported | Maximum value of financial accounts at institutions located in a foreign country | Maximum value of specified foreign financial assets — foreign accounts plus certain non-account investments |
| Filed with | FinCEN, through the BSA E-Filing System | The IRS, attached to your income tax return |
| Due date | April 15, with an automatic extension to October 15 | The due date of your income tax return, including extensions |
| If no income tax return is required | Still may be required | Not required |
Form 8938 thresholds
Form 8938 is required when the total value of your specified foreign financial assets is more than the threshold for your situation:
| Your situation | Last day of the tax year — more than | Any time during the year — more than |
|---|---|---|
| Living in the U.S. — unmarried or married filing separately | $50,000 | $75,000 |
| Living in the U.S. — married filing jointly | $100,000 | $150,000 |
| Living outside the U.S. — unmarried or married filing separately | $200,000 | $300,000 |
| Living outside the U.S. — married filing jointly | $400,000 | $600,000 |
You meet the threshold if either test is exceeded. The FBAR threshold, by contrast, is a single test: more than $10,000 combined at any time, regardless of filing status.
What counts for each form
| Type of foreign asset | FBAR | Form 8938 |
|---|---|---|
| Deposit and custodial accounts at foreign financial institutions | Yes | Yes |
| Account at a foreign branch of a U.S. financial institution | Yes | No |
| Account at a U.S. branch of a foreign financial institution | No | No |
| Foreign account you only have signature authority over | Yes, subject to exceptions | No, unless you also have an interest in it |
| Foreign stock or securities held in a foreign financial account | The account is reported | The account is reported |
| Foreign stock or securities not held in an account | No | Yes |
| Foreign mutual funds | Yes | Yes |
| Foreign-issued life insurance or annuity with a cash value | Yes | Yes |
| Foreign real estate held directly | No | No |
| Foreign currency or precious metals held directly | No | No |
| Foreign government social security-type benefits | No | No |
Summarized from the IRS comparison table. Check the instructions for each form for complete rules.
Foreign pensions: the Form 8938 instructions require you to report your interest in a foreign pension or deferred compensation plan (not the plan's separate assets), while foreign government social security–type programs are not reportable. For the FBAR, the Internal Revenue Manual says the retirement plan exception covers IRAs and U.S. tax-qualified plans only, and that foreign plans are normally reportable. Whether a particular plan is a foreign financial account depends on the plan. See Foreign pensions and retirement accounts.
Four common situations
| Situation (living in the U.S.) | FBAR? | Form 8938? |
|---|---|---|
| Single; one Taiwan savings account; highest balance $30,000 | Yes — over $10,000 | No — under $50,000 at year end and $75,000 at any time |
| Single; Taiwan accounts worth $120,000 at year end | Yes | Yes — over $50,000 at year end |
| Married filing jointly; combined foreign accounts peaked at $90,000 | Yes | No — under the $100,000 / $150,000 joint thresholds |
| Single; owns an apartment in Taiwan directly, no foreign accounts | No | No — real estate held directly is not reported |
Separately from both forms, Part III of Schedule B (Form 1040) asks whether at any time during 2025 you had a financial interest in or signature authority over a financial account in a foreign country. The instructions say to check "Yes" even if you are not required to file an FBAR.
Values and exchange rates
Both forms report the maximum value of each account or asset during the year, in U.S. dollars. For both, the IRS comparison says to convert using the exchange rate for the last day of the year. For an FBAR, use your periodic account statements to find the maximum value in the account's own currency first.
Reporting is not the same as tax
Neither form is a tax. They are disclosure forms. The income your foreign accounts earn — interest, dividends, gains — is reported separately on your income tax return if you are a U.S. citizen or resident. See Foreign income: do U.S. tax residents report worldwide income?
Form 8938: up to $10,000 for failing to file, plus up to $10,000 for each 30 days of continued failure after IRS notice (up to $60,000), and criminal penalties may apply. FBAR: civil penalty maximums are adjusted for inflation each year, and criminal penalties may apply. If you have missed either form in past years, talk to a tax professional before filing late.