FBAR & FATCA: what every American abroad must file (and the penalties)
Two foreign-account disclosures catch out US citizens abroad: the FBAR (FinCEN Form 114) and FATCA (IRS Form 8938). They overlap, they're not the same, and the penalties for missing them are brutal. Here's exactly who files what.
The short version
- FBAR (FinCEN 114): file if your foreign accounts combined topped $10,000 at any point in the year. Filed with FinCEN, separately from your tax return.
- FATCA (Form 8938): file if your foreign assets exceed higher thresholds (for filers abroad, $200k end-of-year / $300k any time, single). Filed with your tax return.
- Both are information reports — they don't create a tax bill, but skipping them is where the penalties live.
- Deadline: the FBAR is due April 15, auto-extended to October 15 (no form needed).
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.
Do I need to file? (quick check)
A directional check based on the thresholds — not tax advice, and not a substitute for confirming your specific facts.
Directional only — not tax advice. FATCA also has lower end-of-year thresholds, and signature-authority/joint accounts have special rules. Confirm with a cross-border pro.
Filing from abroad
Which foreign-account report applies to you
- $10,000+ all foreign accounts combined, any time in the yearFile the FBAR (FinCEN Form 114)
- $200k / $300k single filer abroad — end of year / any timeAlso file FATCA Form 8938
- $400k / $600k married filing jointly abroad — end of year / any timeForm 8938 threshold (joint)
Thresholds for US persons living abroad — confirm current figures on IRS.gov.
FBAR (FinCEN Form 114) in detail
The FBAR is a Report of Foreign Bank and Financial Accounts. You file it if you're a US person with a financial interest in — or signature authority over — foreign financial accounts whose aggregate value exceeded $10,000 at any point in the calendar year. It's filed electronically with the Treasury's Financial Crimes Enforcement Network (FinCEN) through the BSA E-Filing system — not with the IRS and not part of your 1040.
What counts: foreign checking and savings, brokerage and securities accounts, many foreign pensions and cash-value insurance. What generally doesn't: foreign real estate you own directly, physical cash, and precious metals held yourself. The deadline tracks your tax return — April 15, with an automatic extension to October 15.
FATCA (Form 8938) in detail
Form 8938, the Statement of Specified Foreign Financial Assets, is filed with your tax return. Its thresholds are much higher than the FBAR's and depend on your filing status and whether you live in the US or abroad:
| Filing status (living abroad) | End of year | Any time in year |
|---|---|---|
| Single / separate | $200,000 | $300,000 |
| Married filing jointly | $400,000 | $600,000 |
Thresholds are far lower if you live in the US ($50k/$75k single, $100k/$150k MFJ). Confirm the current figures on IRS.gov.
FBAR vs Form 8938 at a glance
| FBAR (FinCEN 114) | FATCA (Form 8938) | |
|---|---|---|
| Filed with | FinCEN (separate e-file) | IRS, with your tax return |
| Threshold (abroad) | $10,000 aggregate, any time | $200k EOY / $300k anytime (single) |
| Signature-only accounts | Often reportable | Generally not |
| Directly-held real estate | No | No |
Many expats have to file both — they cover overlapping but not identical ground.
The penalties (why this matters)
FBAR penalties are unusually steep. A non-willful failure carries a penalty of around $10,000 per report (a statutory figure that's adjusted upward for inflation). A willful failure can reach the greater of roughly $100,000 (also inflation-adjusted) or 50% of the account balance — with potential criminal exposure on top. Form 8938 failures start around $10,000 and climb if you don't fix them after notice.
One important recent clarification: in Bittner v. United States (2023), the Supreme Court held the non-willful FBAR penalty applies per report, not per account — a meaningful limit, but the exposure is still serious. Penalty figures change with inflation and enforcement; verify current numbers before relying on them.
Behind on filing? You have options
Most Americans abroad who fall behind simply never knew. The IRS Streamlined Filing Compliance Procedures exist for exactly this: if your failure was non-willful, you can file back FBARs and amended/late returns and often avoid penalties entirely. The catch — it works best before the IRS reaches out, so don't sit on it.
Where this gets people
- "It's part of my tax return." It isn't — the FBAR is a separate FinCEN e-filing, and people miss it for years.
- The $10,000 is aggregate. Five small accounts that briefly total $10,001 trigger reporting on all of them.
- Joint and signature-authority accounts count. A spouse's account or an employer account you can sign on can pull you in.
- Foreign pensions and some insurance count. Don't assume "it's just my pension."
- Funds inside those accounts can be PFICs. Reporting the account is one thing; foreign mutual funds/ETFs inside it create their own US tax headache.
Not sure what you owe — or behind?
FBAR/FATCA and the streamlined catch-up are exactly where a US-expat specialist earns their fee. They'll file the reports correctly and keep you out of the penalty zone.
Get expat taxes done with Bright!Tax →FAQ
Is the FBAR the same as my tax return?
No — and this trips people up constantly. The FBAR (FinCEN Form 114) is filed separately and electronically with FinCEN through the BSA E-Filing system, not with the IRS and not attached to your Form 1040. FATCA Form 8938, by contrast, is filed WITH your tax return. You can owe one, both, or neither.
What counts toward the $10,000 FBAR threshold?
It's the combined high point of ALL your foreign financial accounts during the year — checking, savings, brokerage, most foreign pensions, and certain cash-value insurance — added together. If the aggregate tops $10,000 at any single moment in the year, every account must be reported, even ones with tiny balances.
Do I have to report an account I only have signature authority over?
Often yes. The FBAR can apply to accounts you control but don’t own — for example, signature authority over an employer’s or a club’s foreign account. The thresholds and rules differ from accounts you own, so check carefully.
What happens if I never knew I had to file?
There is a path: the IRS Streamlined Filing Compliance Procedures let taxpayers whose failure was non-willful catch up on FBARs and returns, often without penalties. Getting this right matters — do it with a cross-border professional before the IRS contacts you, not after.
Does filing an FBAR mean I owe tax?
No. The FBAR and Form 8938 are information reports — they don’t themselves create a tax bill. The income those accounts generate may be taxable on your return, but the reports are about disclosure, not tax owed.
Keep reading
- FEIE vs the Foreign Tax Credit — how to not get double-taxed in the first place.
- Money guide: Americans in Portugal — and the country guides for banking specifics.
- Transfer cost comparison tool.
Published 2026-06-03. General information, not tax or legal advice — confirm current thresholds, deadlines, and penalty figures on IRS.gov / FinCEN and with a qualified cross-border professional.
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.