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.
| FBAR (FinCEN 114) | FATCA Form 8938 | |
| Report to | FinCEN – Financial Crime Enforcement Network | IRS – Internal Revenue Service |
| Method of Reporting | Electronically transmitted in separate system directly to the Financial Crimes Enforcement Network of the Department of Treasury | Filed together with the tax return, electronically transmitted by the individual or via the postal services |
| Reporting Threshold | An accumulated sum of $10,000 in all financial accounts at any point in time during one year | 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 |
| Reporting Date | Starting 2016, FBAR will be synched with the time of tax return filing | Filed with the tax return |
| Possible 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. | 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 |
| Reporting Accounts | ||
| Financial account managed in a foreign institution | Yes | Yes |
| Financial account managed by an American entity in a foreign country | Yes | No |
| Financial account managed by a foreign entity in the US | Yes | No |
| Signatory in a foreign financial account | Yes | No |
| Financial investment via a financial account | Yes, no need to separately report accounts’ components. | Yes, no need to separately report accounts’ components. |
| Financial investment not via a financial account | No | Yes |
| Participating unit | No | Yes |
| Foreign trust fund | Yes | Yes |
| Foreign account held via an entity | In case the percentage of entity ownership is 50% or more | No |
| Life insurance with cash value | Yes | Yes |
| Real estate | No | No |
| Real estate via an entity | No | Reflected via stock or rights to the foreign entity |
| Cash, jewellery, precious metals, antiques, art, collections, vehicles and personal assets held directly (not via an account) | No | No |
| Social insurance | No | No |