Are you living in a Foreign country as a U.S. citizen? Then you might be subject to both FBAR and FATCA reporting requirements. Failing to file either could result in hefty fines.
What Is FBAR?
The Foreign Bank Account Report (FBAR) must be filed if you have $10,000 or more (in total) in foreign financial accounts at any point during the year. This includes personal accounts, business accounts, and joint accounts.
What do I need to know?
- Filed separately from your tax return
- Deadline aligns with tax filing (April 15, with extension to October)
- Must be filed electronically through FinCEN
What Is FATCA?
FATCA (Foreign Account Tax Compliance Act) requires you to file Form 8938 with your tax return if your foreign assets exceed certain thresholds. For most single filers abroad, that’s $200,000 on the last day of the year or $300,000 at any point.
What do I need to know?
- Includes assets like foreign pensions, investments, and certain trusts
- Filed with your IRS Form 1040
Key Differences
- FBAR focuses on account balances; FATCA includes broader asset categories
- FBAR is filed with FinCEN; FATCA with the IRS
- Different penalties and thresholds
Failure to file timely may trigger SDO or SFO, see our website if you’ve not reported foreign income in the past on your US return.
Stay Ahead of Compliance!