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Update: the IRS has withdrawn the Delinquent FBAR Submission Procedures. The programme’s page on irs.gov now returns an error, and the IRS list of options for taxpayers with undisclosed foreign financial assets names only three routes: the Criminal Investigation Voluntary Disclosure Practice, the Streamlined Filing Compliance Procedures, and the delinquent international information return submission procedures, which is a separate programme for information returns rather than FBARs. This page is kept for reference and describes the procedures as they operated while they were open. Where this article mentions the delinquent FBAR route as a way to fix a missed report, read streamlined filing instead. The thresholds and the difference between the two reports are unaffected. If you need this looked at on your own facts, request a quote or contact me directly.
The FBAR and FATCA’s Form 8938 are two different reports about the same money. The FBAR goes to FinCEN, separately from your taxes, once foreign accounts top $10,000 in aggregate. Form 8938 goes to the IRS with your return, at thresholds from $50,000 to $600,000 depending on filing status and where you live. Meeting one obligation does not satisfy the other, and many filers owe both.
The overlap is intentional. Congress built two nets with different mesh, and the gaps in one are covered by the other.
Here is the side-by-side, the exact Form 8938 thresholds, and what to do if you are behind on one or both.
What Is the Difference Between FBAR and FATCA?
The FBAR comes from the Bank Secrecy Act and reports foreign financial accounts to FinCEN. FATCA added Form 8938 to the tax code, reporting a wider set of specified foreign financial assets to the IRS on your return. The IRS keeps its own side-by-side comparison of the two, and the table below carries the working version.
| Factor | FBAR (FinCEN Form 114) | FATCA (Form 8938) |
| Agency and filing | FinCEN, e-filed through the BSA system, separate from your taxes | IRS, attached to your income tax return |
| Threshold | $10,000 aggregate across all foreign accounts at any point in the year | $50,000 to $600,000 by filing status and residence, tested at year end and at the peak |
| What is reported | Foreign financial accounts, including signature authority accounts | Specified foreign financial assets: accounts plus directly held foreign stock, partnership interests, and certain instruments |
| Deadline | April 15, automatic extension to October 15 | Your return deadline, extensions included |
| Penalties | $16,536 per report non-willful, willful the greater of $165,353 or 50 percent | $10,000, plus up to $50,000 more after IRS notice, plus a 40 percent accuracy penalty on related understatements |
| Measurement | Six-year assessment clock that runs even unfiled | The whole return’s statute stays open until the form is filed |
Same money, two systems, two sets of math. That is the whole story in one sentence, and everything below is the detail.
Two systems, and the FBAR half is the one people underestimate, because its trigger is small and it is measured across everything added together at a single high point rather than at year end. I keep five short emails on that side of it, running from the scope question through to the choice between filing the late reports on their own and using the broader route where income went unreported. A confirmation note has to be answered before the series begins. Send me the five FBAR emails. Unsubscribing takes one click from any of them.
What Are the Form 8938 Thresholds?
Four cells decide it: your filing status, and whether you live in the United States or abroad. You file Form 8938 if the total value of your specified foreign assets crosses either test, the value on the last day of the year or the peak value at any point during it.
| Filing status and residence | Last day of the year | Any time during the year |
| Single or separate, living in the U.S. | $50,000 | $75,000 |
| Married filing jointly, living in the U.S. | $100,000 | $150,000 |
| Single or separate, living abroad | $200,000 | $300,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
| Measurement | Cross either column and Form 8938 is required | The FBAR trigger stays $10,000 regardless |
Living abroad, for this purpose, means bona fide foreign residence or 330 full days outside the United States. Unlike the FBAR figures, these thresholds do not index, and preparing the form itself is what the Form 8938 FATCA Filing service covers.
Valuation follows the form’s own rules, generally fair market value with year-end exchange rates and a reasonable estimate standard, and the instructions on the IRS Form 8938 page govern the edge cases.
Do You Have to File Both FBAR and Form 8938?
Often, yes. A U.S. resident couple with $160,000 in foreign accounts owes both reports for the same accounts in the same year. Filing one does not excuse the other, and the duplication is by design.
The edges differ, though. Signature authority over an employer’s account belongs on the FBAR but not on Form 8938. Form 8938 only applies in years you are required to file a return. And directly held foreign real estate appears on neither, while an interest in the entity that holds it can appear on 8938.
The enforcement side explains the redundancy. Treasury lists FATCA agreements with more than 100 jurisdictions, and the IRS registry of participating foreign financial institutions has grown past 300,000, each one feeding account data back on U.S. persons. The government is not relying on your memory.
As I tell clients who ask why two forms exist: “FBAR and Form 8938 are not the same report filed twice. They are two agencies asking overlapping questions with different math, and the most expensive assumption in this area is that filing one covered you for the other.”
How Do FBAR and Form 8938 Penalties Differ?
Structurally, in three ways. FBAR penalties index for inflation and, under Bittner v. United States, apply per report. Form 8938 penalties stay flat: $10,000 for the failure, another $10,000 for each 30 days after an IRS notice, capped at $50,000 more, with a 40 percent accuracy penalty available on understatements tied to the undisclosed assets. The full FBAR penalty framework has its own guide.
The clocks are the sharpest contrast. The FBAR assessment window runs six years from each due date whether you file or not. A missing Form 8938 does the opposite: it holds the statute of limitations open on your entire return until the form arrives. One exposure ages out on its own. The other waits for you.
What If You Are Behind on One or Both?
Sort it by what is missing. Missed FBARs with every dollar of income already reported: the delinquent FBAR submission procedures, free and penalty free. A missed Form 8938 on otherwise correct returns: amended returns carrying the form with a reasonable cause statement, and the wording of that statement is judgment work. The reasons that hold up borrow the familiar patterns, a preparer who never asked, no exposure to the regime, clean income throughout.
Unreported foreign income underneath either form: streamlined filing, and here is the point most people miss. Both filings are part of a streamlined submission. The package carries six years of FBARs and Form 8938 on each amended return where the thresholds were met, one coordinated repair through the Streamlined Filing CPA Package rather than two loose ends.
Case study: A dual-citizen couple came to Ed Parsons CPA having filed FBARs faithfully for four years while never filing Form 8938, with $164,000 of accounts at year end against their $100,000 joint threshold. Every dollar of income was on Schedule B. Base exposure if the IRS had noticed first: $40,000 across four forms, and up to $240,000 with continuation penalties. We filed four amended returns carrying the 8938s and a reasonable cause statement. Assessed: $0. The FBAR side needed nothing, because it was never the broken side.
That outcome came from working out which side was actually broken before anything was filed, and that is not something anyone can tell from the outside. If you are behind on one report or on both, tell me the years and the accounts and I will scope it properly. The questions cover the years in question, where the income came from, and which of the foreign forms are in play, and there is a slot to attach what you already hold. Nothing bounces back automatically when you submit it. The answers come to me, and the reply you get is mine.
Frequently Asked Questions
My Take After 17 Years of Two-Report Files
The most common failure I see is the half fix. Someone learns about the FBAR, cures the FinCEN side, and never hears that the IRS side exists. That is curing the report whose exposure ages out in six years while leaving open the one that holds the entire return hostage. It is exactly backwards.
The underrated move takes two minutes: run your year-end and peak asset totals against the four threshold cells once a year. The FBAR question answers itself at $10,000. The 8938 question is the one that actually needs the table.
If I were the reader, I would check both nets today, fix them in the right order, and let a coordinated filing close both at once where income is the real problem. At Ed Parsons CPA, IRS account work is the core of the practice.
