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Compliance · US 2026

FBAR vs FATCA: reporting foreign accounts

If you moved to the US and kept a bank account back home — or you're a US citizen living abroad — two separate reporting rules may apply. They confuse almost everyone because they overlap but aren't the same. Here's the plain-English version for 2026, including who files what, when, and what happens if you don't.

Rule 1 — the FBAR (the low, $10,000 trigger)

If you're a US person and the combined peak value of all your foreign financial accounts was more than $10,000 at any single moment during the year, you must file an FBAR (FinCEN Form 114). Two things trip people up: it's the combined total across all accounts (three $4,000 accounts = $12,000, over the line), and it's the highest value at any point, not the year-end balance.

Where it goes: the FBAR is filed to FinCEN through the BSA E-Filing system — not with your tax return. It's due April 15, automatically extended to October 15. There's no tax; it's an information report.

Rule 2 — FATCA Form 8938 (higher thresholds, filed with your taxes)

Form 8938 is filed with your Form 1040 and only kicks in at higher amounts, which depend on where you live and your filing status:

Living in the US: single (or married filing separately) — over $50,000 on the last day of the year, or over $75,000 at any time. Married filing jointly — $100,000 / $150,000.

Living abroad (you're a bona fide resident of a foreign country all year, or you were physically present in a foreign country 330+ days in a 12-month period): single — over $200,000 / $300,000. Married filing jointly — $400,000 / $600,000.

All of these are "more than" figures — landing exactly on the number doesn't trigger the form.

The trap: they don't cancel each other out

Filing Form 8938 does not satisfy your FBAR obligation, and vice-versa. They go to different agencies. Plenty of people have to file both — for example, a US resident with $80,000 in a Spanish account crosses the FBAR ($10,000) and the single US 8938 last-day threshold ($50,000), so both apply.

Why it's worth getting right

The penalties are wildly out of proportion to the effort. A non-willful FBAR penalty runs up to roughly $16,500; Form 8938 failure-to-file is $10,000 (with more piling on after IRS notice). Both forms are free to file. If you've missed prior years, the IRS streamlined filing procedures exist for non-willful cases — worth asking a cross-border professional about before you file.

Check which forms you owe Free checker: enter where you live, your status, and your account values — see FBAR and Form 8938 at once.

Frequently asked questions

Do I pay tax on the balance?

No — both are reporting forms, not taxes. But the income the accounts earn (interest, dividends, gains) is taxable on your US return.

What counts as a "foreign financial account"?

Bank accounts, most brokerage accounts, certain foreign pensions and mutual funds. Form 8938 additionally captures some non-account assets like foreign stock or partnership interests held directly.

I'm not a US citizen — does this apply?

It applies to US persons, which includes green-card holders and people who meet the Substantial Presence Test. If you're unsure of your US tax status, check that first.

Sources

Based on the IRS FBAR page ($10,000 aggregate, any time; FinCEN filing; April 15 / October 15), the IRS "Do I need to file Form 8938" guidance and Form 8938 instructions (residence- and status-based thresholds), the IRS comparison of Form 8938 and FBAR (filing one does not relieve the other), and 31 CFR 1010.821 (penalty adjustments).

Verified as of July 19, 2026 — IRS FBAR & 8938 pages; 8938 instructions; FBAR/8938 comparison; 31 CFR 1010.821 · Educational, not tax advice.

Sources: IRS — FBAR · IRS — Form 8938 · IRS — 8938 vs FBAR