Quick overview

  • FBAR (FinCEN Form 114): reports foreign financial accounts (aggregate value over $10,000 at any time during the calendar year). File electronically through FinCEN’s BSA E-Filing System by the tax-year deadline (April 15) with an automatic extension available (see FinCEN).
  • Form 8938 (FATCA): reports specified foreign financial assets on your Form 1040 when you meet IRS thresholds for your filing status (different thresholds apply for U.S. residents vs. bona fide residents abroad).

Who must file

  • FBAR: U.S. citizens, U.S. residents, certain domestic entities (including many trusts and corporations) who have a financial interest in or signature authority over foreign accounts and whose aggregate foreign account value exceeded $10,000 at any time during the calendar year. (FinCEN guidance)
  • Form 8938: individual U.S. taxpayers (including residents abroad) who meet the asset thresholds in the Form 8938 instructions. For example, for many taxpayers living in the U.S. the thresholds are $50,000 on the last day or $75,000 at any time during the year for single filers (higher thresholds apply for married filing jointly and for taxpayers living abroad). (IRS Form 8938 instructions)

Where and when to file

  • FBAR: FinCEN Form 114 — file electronically at the BSA E-Filing System. Due April 15 of the year following the calendar year reported; FinCEN provides an automatic extension to file (see FinCEN). FinCEN – BSA Form 114
  • Form 8938: Attach to your Form 1040 when you file your federal income tax return. If you file an extension for your tax return, your Form 8938 filing deadline generally follows that extension. IRS — About Form 8938

How to amend or correct disclosures

1) Amending Form 8938

  • Prepare an amended federal return (Form 1040-X) for the year you need to correct. Include a corrected Form 8938 and a clear explanation of the changes.
  • If the change affects tax liability, submit payment or request an abatement as appropriate; include supporting documentation for asset valuations and currency conversions.
  • Keep copies of all attachments and a dated explanation; retain records at least as long as the statute of limitations for the tax year.

2) Correcting or filing late FBARs

  • To correct a previously filed FBAR: file an amended FBAR electronically through the BSA E-Filing System following FinCEN’s instructions for corrected filings.
  • If you failed to file an FBAR on time: evaluate whether you qualify for the IRS Delinquent FBAR Submission Procedures or the Streamlined Filing Compliance Procedures (for non-willful failures). For willful failures, get professional legal/tax counsel; civil and criminal exposure can be severe. (See FinCEN and IRS guidance.)

Choosing a correction pathway (practical checklist)

  • If the missed reporting appears non-willful, gather complete account statements, valuation records, and a written timeline. Consider the Streamlined Domestic or Offshore Procedures if you meet eligibility criteria. [IRS Streamlined Filing Compliance Procedures — IRS.gov]
  • If the omission is limited and you can correct via simple amended filings, submit corrected FBAR(s) and/or a Form 1040-X with corrected Form 8938, plus supporting documentation.
  • If willfulness is possible (e.g., concealment, altered records), stop and consult a tax attorney experienced in international matters before filing — voluntary disclosures can have complex civil and criminal consequences.

Penalties and risk (high level)

  • FBAR: civil penalties can be significant. The law distinguishes non-willful failures (civil penalties up to about $10,000 per violation historically) from willful failures (penalties can equal the greater of $100,000 or 50% of the account balance, and criminal prosecution is possible). (FinCEN/IRS guidance)
  • Form 8938: failure-to-file penalties start with a $10,000 penalty and can increase if not corrected; additional penalties may apply if the failure is found to be intentional. (IRS instructions)

Common mistakes and misconceptions

  • Reporting on one form does not satisfy the other: FBAR and Form 8938 are separate filings with different definitions and thresholds.
  • Mixing currency conversions or using inconsistent valuation dates: use consistent methods and document them.
  • Assuming an attorney or preparer filed the form — confirm and keep copies.

Professional tips (from practice)

  • Inventory foreign exposure annually: reconcile account statements, investment holdings, and foreign pensions against filing thresholds.
  • Document valuation methodology: keep exchange rates and dates, appraisals for real estate interests, and trustee statements for custodial accounts.
  • When in doubt, file early; timely filings with clear documentation reduce audit and penalty risk.

Related FinHelp resources

Authoritative sources

Disclaimer

This entry is educational only and does not constitute tax, legal, or financial advice. For personalized guidance — especially when willfulness or substantial tax exposure exists — consult a qualified tax attorney, CPA, or enrolled agent experienced in international tax compliance.