Differences between FBAR and FATCA 8938
The Differences between FBAR reporting and reporting FATCA 8938
The following chart illustrates the main differences between the two reports.
Note that once the maximal sum for disclosure has been crossed, both forms are required.
| FATCA Form 8938 | FinCEN 114 (FBAR) | |
| IRS – Internal Revenue Service | FinCEN – Financial Crime Enforcement Network | Report to |
| Filed together with the tax return, electronically transmitted by the individual or via the postal services | Electronically transmitted in separate system directly to the Financial Crimes Enforcement Network of the Department of Treasury | Method of Reporting |
| Value exceeding $200,000 on the last day on the calendar year,or $300,000 on any other day for an individual or one married to a foreign citizen; Value exceeds $400,000 on the last day of the calendar year, or $600,000 on any other day for an American married couple | An accumulated sum of $10,000 in all financial accounts at any point in time during one year | Reporting Threshold |
| Filed with the tax return | Starting 2016, FBAR will be synched with the time of tax return filing | Reporting Date |
| Up to $10,000 for every unreported account; an additional $10,000 for every 30 days past IRS notice up to a maximum of $60,000. Possible criminal penalties | Up to $10,000 per account if bona fide error; otherwise $100,000 or 50% of the balance in the highest account. Possible criminal penalties. | Possible Penalties |
Reporting Accounts
| Yes | Yes | Financial account managed in a foreign institution |
| No | Yes | Financial account managed by an American entity in a foreign country |
| No | Yes | inancial account managed by a foreign entity in the US |
| No | Yes | Signatory in a foreign financial account |
| Yes, no need to separately report accounts’ components. | Yes, no need to separately report accounts’ components. | Fnancial investment via a financial account |
| Yes | No | Financial investment not via a financial account |
| Yes | No | Participating unit |
| Yes | Yes | Foreign trust fund |
| No | In case the percentage of entity ownership is 50% or more | Foreign account held via an entity |
| Yes | Yes | Life insurance with cash value |
| No | No | Real estate |
| Reflected via stock or rights to the foreign entity | No | Real estate via an entity |
| No | No | Cash, jewellery, precious metals, antiques, art, collections, vehicles and personal assets held directly (not via an account) |
| No | No | Social insurance |