FBAR and FATCA: Reporting Foreign Bank Accounts to the US
US persons with foreign financial accounts have two separate reporting obligations. Confusing them — or skipping them — has bankrupted otherwise compliant taxpayers.
FBAR — the $10,000 trigger
If the aggregate value of all your foreign accounts exceeded $10,000 at any point during the year, you must file FinCEN Form 114 (FBAR). Threshold is total across all accounts, not per account.
Who counts as 'US person'
- US citizens (anywhere in the world)
- US resident aliens (green card holders, substantial-presence test)
- US entities (corporations, partnerships, LLCs, trusts)
What's a 'foreign financial account'
- Bank accounts at non-US institutions
- Brokerage accounts at non-US firms
- Foreign mutual funds and pensions
- Accounts with signature authority (employer accounts) — yes, even without ownership
- Foreign-issued life insurance with cash value
How and when to file FBAR
Filed electronically on the FinCEN BSA E-Filing portal — separate from your tax return. Due April 15 with an automatic extension to October 15. No income reporting; just account info and max balance.
FATCA Form 8938 — different thresholds
Filed WITH your tax return when foreign assets exceed:
| Filer | End of year | Any point during year |
|---|---|---|
| Single, US-resident | $50,000 | $75,000 |
| MFJ, US-resident | $100,000 | $150,000 |
| Single, abroad | $200,000 | $300,000 |
| MFJ, abroad | $400,000 | $600,000 |
The penalties are brutal
- Non-willful FBAR: up to $10,000 per violation (per account, per year — courts split)
- Willful FBAR: greater of $100,000 or 50% of account balance per year
- Form 8938: $10,000 + $10,000 per 30 days after IRS notice, max $50,000
Streamlined compliance for past mistakes
The IRS Streamlined Filing Procedures let non-willful non-filers come into compliance with reduced penalties (sometimes zero for those living abroad). Talk to an international tax attorney — this is one area where DIY usually backfires.
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