The single most common confusion in foreign-account reporting is the relationship between the FBAR and Form 8938. They sound interchangeable — both report foreign financial accounts, both punish non-filing, both are annual. In reality they are administered by different agencies, triggered at wildly different thresholds, and they cover overlapping-but-different asset pools. This page gives you the comparison in one table, then the rules of thumb that resolve 90% of real-world cases.
The one-glance comparison
| FBAR (FinCEN Form 114) | Form 8938 (Statement of Specified Foreign Financial Assets) | |
|---|---|---|
| Filed with | FinCEN (BSA E-Filing System) | IRS, attached to your Form 1040 |
| Legal authority | Bank Secrecy Act (31 U.S.C. § 5311 et seq.) | FATCA (IRC § 6038D) |
| Threshold | Aggregate of foreign accounts > $10,000 at any time during the year | US residents: $50,000 on the last day or $75,000 any time (double if MFJ). Living abroad: $200,000 last day or $300,000 any time (double if MFJ) |
| What it covers | Financial accounts: bank, brokerage, mutual funds, certain insurance/annuity cash value, accounts where you have signature authority | Specified foreign financial assets: accounts plus foreign stock and securities, interests in foreign entities, foreign-issued contracts with an issuer, some foreign pensions |
| What it does not cover | Non-account assets (shares of foreign companies you hold, foreign real estate, interests in foreign businesses) | Accounts held at US institutions holding foreign funds, foreign real estate held directly |
| Maximum value reported? | Yes — maximum value of each account during the year | No — year-end (or highest) values by asset category |
| Joint-owner rules | Report full value; flag joint ownership | Report your share of jointly held assets |
| Penalty structure | Civil penalties inflation-adjusted annually: up to $16,536 per report non-willful; willful = greater of $165,353 or 50% of balance | $10,000 to start; up to $10,000/month (max $50,000) for continued failure after notice; open-ended statute of limitations on the return |
| Filed even with no income? | Yes — existence matters, not income | Yes |
| Electronic only? | Yes — strictly e-file with FinCEN | No — filed as part of the income tax return |
The four patterns that decide your situation
1. Small accounts, no investments: FBAR only. A local bank account with $12,000 crosses the FBAR threshold but sits far below any Form 8938 threshold. Result: FBAR required, 8938 not.
2. Living abroad with pensions and brokerage accounts: often both. A US citizen in Germany with a €150,000 brokerage account and a workplace pension clears the FBAR threshold by a mile and plausibly the living-abroad 8938 thresholds too. Foreign pensions are the nuanced asset here — their treatment differs between the two forms, which is why they are the classic "verify with a professional" item.
3. Shares in foreign companies: 8938 without FBAR. Directly held stock of a foreign company is a specified asset for Form 8938, but it is not a financial account for the FBAR. Owning foreign shares (or an interest in a foreign business) can trigger 8938 with no FBAR at all.
4. Foreign mutual funds held through a US broker: neither, usually. The account is at a US institution, so it is not a foreign financial account for the FBAR, and US-located accounts holding foreign-domiciled funds generally do not go on 8938 either. (The tax bite for foreign funds arrives elsewhere — the punitive passive foreign investment company rules — which is a different article's problem.)
Why the thresholds differ so much
The two regimes were born from different statutes answering different questions. The FBAR descends from the Bank Secrecy Act of 1970 — a money-tracing tool aimed at hidden accounts, hence the low, account-only threshold. Form 8938 was created by FATCA in 2010 — an income-tax-compliance tool aimed at offshore assets generally, hence the higher, asset-based thresholds. Same surveillance instinct, different tripwires. The practical consequence: the FBAR catches far more people, and Form 8938 adds obligations at the wealthier end.
The compliance trap to avoid
Because the forms go to different agencies, no cross-checking happens automatically between them — which means the failure mode is not inconsistency, it's omission. People who owe both and file one often assume the other is handled. It isn't: filing the FBAR with FinCEN does nothing for your 8938 obligation to the IRS, and vice versa. If you determine you owe both, calendar both, file both, and keep confirmations for five years.
And if you're discovering missed years of either form: our guide to filing late FBARs after the July 2026 removal of the DFSP covers the FBAR catch-up, and the IRS's Streamlined procedures are the established channel for past-due 8938s filed alongside late returns.
This page is general information, not tax or legal advice. Thresholds above are current as of September 2026; verify against IRS Form 8938 resources and the IRS FBAR reference.
Frequently asked questions
Can you file Form 8938 instead of an FBAR?
No. They are separate filings with separate agencies: Form 8938 goes to the IRS with your tax return, and the FBAR goes to FinCEN. If you meet each form's threshold, you must file each one. Filing one never excuses the other.
Do most expats need to file both?
Often yes. The FBAR threshold ($10,000 aggregate) is much lower than the Form 8938 threshold ($50,000–$100,000 for US residents, $200,000–$400,000 for those living abroad), so many people owe an FBAR without owing 8938. Expats with pensions or investment accounts frequently owe both.
What is the Form 8938 threshold?
For taxpayers living in the US, Form 8938 is required when specified foreign financial assets exceed $50,000 on the last day of the tax year or $75,000 at any time during the year (double for married filing jointly). For US citizens living abroad, the thresholds are $200,000 on the last day, or $300,000 at any time during the year (double for married filing jointly).
What is the penalty for not filing Form 8938?
The starting penalty is $10,000, and it can increase by up to $10,000 per month of continued failure after IRS notice, up to a $50,000 maximum for the continued failure — plus the statute of limitations on your entire return can stay open. By contrast the FBAR penalty structure is inflation-adjusted per report or per account.
Are foreign pensions reported on FBAR or 8938?
Foreign pensions are a nuance: the FBAR question depends on whether the arrangement is a 'financial account' (many are), while Form 8938 generally covers pensions as specified foreign financial assets. Because the treatment differs by plan type and country, foreign pensions are one of the classic situations to verify with a cross-border professional.