When Should You File FBAR and FATCA Forms for Foreign Income Reporting?

Why it matters

FBAR and FATCA serve different compliance goals and have separate filing tests, deadlines, and penalties. FBAR protects the U.S. financial system by collecting information about foreign accounts (FinCEN), while FATCA (Form 8938) collects data on specified foreign financial assets for tax reporting (IRS). Failing to file either can trigger significant civil and criminal penalties. In my work advising clients, missed filings are a common audit trigger; proactive reporting often prevents bigger problems later.

How the two rules differ (quick comparison)

Current thresholds and deadlines (as of 2025)

  • FBAR: Aggregate foreign account value over $10,000 at any point in the calendar year. Deadline: April 15 with an automatic extension to October 15 (file via FinCEN BSA E-Filing).

  • FATCA (Form 8938) thresholds for U.S. residents filing a return:

  • Single or married filing separately: $50,000 on the last day of the tax year or $75,000 at any time during the year.

  • Married filing jointly: $100,000 on the last day of the tax year or $150,000 at any time during the year.

    For taxpayers living abroad (higher thresholds):

  • Single: $200,000 on the last day of the tax year or $300,000 at any time during the year.

  • Married filing jointly: $400,000 on the last day of the tax year or $600,000 at any time during the year.

Penalties and consequences

  • FBAR penalties: civil penalties for non-willful violations are generally up to $10,000 per violation; willful violations can reach the greater of $100,000 or 50% of the account balance, plus possible criminal penalties. (FinCEN and IRS FBAR guidance.)

  • FATCA/Form 8938 penalties: failure to file can result in a $10,000 penalty with additional penalties up to $50,000 if you don’t file after IRS notice; deliberate understatement or intentional disregard carries heavier consequences. (IRS Form 8938 guidance.)

Practical filing tips

  1. Track daily or monthly balances. FBAR looks at the aggregate maximum value at any time in the year — a single spike over $10,000 can create an FBAR obligation.
  2. Separate the tests. Meeting one threshold (FBAR or FATCA) does not automatically mean you meet the other; evaluate both rules each year.
  3. Use the right system. FBAR is filed electronically through FinCEN’s BSA E-Filing System; Form 8938 is filed with your federal income tax return. See FinCEN and IRS pages linked above.
  4. Keep documentation. Maintain statements, account-opening paperwork, and transaction logs for at least six years in case the IRS or FinCEN requests verification.
  5. When in doubt, consult a specialist. Complex ownership structures, joint accounts, trusts, and certain foreign retirement accounts can change filing obligations. In my practice, getting a specialist involved early usually reduces audit risk and penalties.

Common mistakes I see

  • Assuming reporting is optional because no U.S. tax is due. Both FBAR and Form 8938 are information-reporting requirements separate from tax liability.
  • Confusing thresholds or using spot balances instead of aggregate values for FBAR.
  • Failing to file because an account is held in a business or foreign trust; many business and entity accounts still trigger reporting.

Short examples

  • Example 1: A U.S. resident has two foreign savings accounts with $6,000 and $5,000 respectively at year-end. Because the accounts’ combined high point exceeded $10,000 during the year, FBAR is required.
  • Example 2: A married couple living abroad with $350,000 in specified foreign financial assets at year-end must file Form 8938 (thresholds for married filing jointly abroad are $400,000 on the last day or $600,000 at any time; if their high point crossed the applicable threshold during the year, report accordingly).

Where to learn more and related FinHelp articles

Frequently asked—short answers

  • Do I need to file both? Possibly—FBAR and FATCA have separate tests; you may need to file one, both, or neither.
  • What if I missed a filing? Options include voluntary disclosure and amended returns; remediation depends on facts and whether the failure was willful. Seek professional help promptly.

Authoritative sources

Professional disclaimer

This article is educational and not personalized tax advice. For decisions about your situation, consult a qualified tax professional experienced in international reporting.