Part of the U.S. Expat Tax Series by Tax.Travel

This article is part of Antravia’s U.S. Expat Tax Series - a collection of practical guides for Americans living or working abroad. Whether you’re a long-term expat, digital nomad, or remote entrepreneur, these resources explain how to stay compliant with the IRS while reducing double taxation and managing your finances internationally.

FBAR and FATCA Explained: Reporting Foreign Bank Accounts as a U.S. Expat

As a U.S. expat, managing your finances abroad comes with unique responsibilities. While living overseas offers exciting opportunities, it also means complying with U.S. tax laws designed to ensure transparency in foreign financial holdings. Two key requirements:
FBAR (Foreign Bank Account Report) and
FATCA (Foreign Account Tax Compliance Act)
help the U.S. government track foreign assets to prevent tax evasion. These rules apply to U.S. citizens, green card holders, and resident aliens, regardless of where you live.

This guide breaks down what FBAR and FATCA entail, who must file, deadlines, penalties, and tips for compliance. All information is fact-checked against official IRS and FinCEN sources as of November 2025. Remember, while this overview is helpful, it’s not a substitute for professional tax advice, so consult a qualified expat tax specialist or Antravia for your situation.

What is FBAR?

The FBAR, or Report of Foreign Bank and Financial Accounts (FinCEN Form 114), is an annual disclosure form required under the Bank Secrecy Act. It mandates reporting of foreign financial accounts to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The goal is to monitor potential money laundering and tax evasion by tracking U.S. persons’ offshore accounts.

Unlike income tax forms, FBAR focuses solely on account existence and maximum values—not on taxable income generated from those accounts.

Who must file FBAR?

You must file an FBAR if:

• You are a U.S. person (citizen, resident, or entity).
• You have a financial interest in, or signature authority over, one or more foreign financial accounts.
• The aggregate value of those accounts exceeded $10,000 at any time during the calendar year.

“Foreign financial accounts” include bank accounts, brokerage accounts, mutual funds, trusts, and certain insurance policies held outside the U.S. The $10,000 threshold is based on the combined maximum value across all accounts, even if briefly exceeded (e.g., due to a temporary deposit). This applies to expats living abroad, as well as U.S. residents with foreign ties.

Joint accounts count toward your reporting if you have financial interest or signature authority. Even if you’re not the primary owner, your share’s value is included.

FBAR Filing Requirements and Deadlines

For the 2025 calendar year (filed in 2026), the FBAR deadline is April 15, 2026. However, all filers receive an automatic six-month extension to October 15, 2026, without needing to request it. This extension applies universally, unlike tax return extensions which expats get automatically until June 16.

FBARs are filed electronically via the BSA E-Filing System (not through the IRS). Paper filing requires a special exemption from FinCEN, which is rare and must be requested in advance.

If you’re late but non-willful, you can use the Delinquent FBAR Submission Procedures to file without penalties, provided the IRS hasn’t contacted you first.

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA), enacted in 2010 as part of the HIRE Act, combats offshore tax evasion by requiring U.S. taxpayers to report specified foreign financial assets. It also mandates foreign financial institutions (FFIs) to report U.S. account holders’ information to the IRS via intergovernmental agreements.

FATCA reporting occurs on IRS Form 8938 (Statement of Specified Foreign Financial Assets), attached to your federal tax return (Form 1040). This is separate from FBAR but it often overlaps, and many expats file both.

Who must file FATCA (Form 8938)?

You must file if you’re a “specified person” (U.S. citizen, resident alien, or certain entities) and the total value of your specified foreign financial assets exceeds the reporting threshold during the tax year. Thresholds vary by filing status and residency:

Filing Status and Residency — Threshold (Aggregate Value of Assets)

• Living in U.S.: Single or Head of Household

$50,000 on last day of year or > $75,000 at any time

• Living in U.S.: Married Filing Jointly

$100,000 on last day or > $150,000 at any time

• Living Abroad: Single or Head of Household

$200,000 on last day or > $300,000 at any time

• Living Abroad: Married Filing Jointly

$400,000 on last day or > $600,000 at any time

“Living abroad” normally means your tax home is outside the U.S. and you’ve been abroad for 330 full days in the year (although check your personal circumstances). Specified assets include foreign bank accounts, stocks, securities, financial instruments, and interests in foreign entities and not real estate or personal items.

Exemptions apply if assets are already reported on other forms (e.g., Form 3520 for trusts) or if you’re a U.S. government employee abroad. Thresholds remain unchanged for the 2025 tax year.

FATCA Filing Requirements and Deadlines

File Form 8938 with your Form 1040 by the tax return due date: June 16, 2026, for expats (automatic two-month extension from April 15). If you extend your return to October 15, Form 8938 extends automatically and no separate Form 7004 needed.

FFIs must report U.S. accounts annually, sharing data with the IRS, which increases enforcement scrutiny.

Key Differences between FBAR and FATCA

While both target foreign assets, they differ in scope, thresholds, and administration:

FBAR (FinCEN Form 114) vs. FATCA (Form 8938)

Agency
• FBAR: FinCEN (Treasury)
• FATCA: IRS

Threshold
• FBAR: $10,000 aggregate (any time in year)
• FATCA: $50,000–$600,000 (depending on status/residency)

What to Report
• FBAR: Foreign financial accounts (banks, brokerages)
• FATCA: Accounts + specified assets (stocks, contracts)

Filing Method
• FBAR: Electronic via BSA E-Filing
• FATCA: Attached to tax return

Deadline
• FBAR: April 15 (auto extend to Oct 15)
• FATCA: Tax return due date (June 16 for expats)

Penalties for Non-Filing
• FBAR: Up to $16,536 (non-willful); greater of $165,353 or 50% of balance (willful)
• FATCA: $10,000 initial; up to $50,000 after notice

Overlap
• Many file both; FBAR doesn’t satisfy FATCA
• FATCA doesn’t satisfy FBAR

FBAR is account-focused; FATCA is asset-focused. Foreign banks report to the IRS under FATCA, making compliance easier to track.

Penalties for Non-Compliance

The U.S. takes these seriously and penalties can be severe, but options exist for voluntary correction.

FBAR Penalties:
• Non-willful: Up to $16,813 per violation (adjusted for inflation in 2025).
• Willful: Greater of $168,159 or 50% of the account balance per violation.
• Criminal: Up to $500,000 fine and 10 years imprisonment in extreme cases.
• Per the 2023 Bittner Supreme Court ruling, penalties are assessed per form, not per account.

FATCA Penalties:
• $10,000 per failure to file.
• Additional $50,000 if not corrected after IRS notice (90-day grace period).
• 40% accuracy-related penalty on underpayments tied to undisclosed assets.

Expats living abroad may qualify for reduced or waived penalties under amnesty programs.

How to get Compliant if you’ve missed Filings

If you’ve overlooked past FBARs or Form 8938s:

• Streamlined Filing Compliance Procedures: For non-willful non-filers living abroad; waives FBAR penalties and reduces tax penalties to 0% (or 5% for U.S. residents). File 3–6 years of returns and FBARs.

• Delinquent FBAR Submission: For FBAR-only; no penalties if non-willful and IRS hasn’t contacted you.

• Act before IRS notice—once they reach out, options narrow.

Tips for U.S. Expats

• Track maximum account values year-round using year-end Treasury exchange rates.
• Use software or a CPA familiar with expat taxes—many services bundle FBAR/FATCA filing.
• Report all income from foreign assets on your 1040, even if exempt via Foreign Earned Income Exclusion.
• For 2026 filings (2025 data), start gathering statements now.
• Digital assets like crypto may face expanded rules soon—monitor IRS updates.

Staying compliant keeps you penalty-free and lets you focus on your expat life. For personalized help, reach out to Antravia, an enrolled agent or CPA specializing in international tax.

Looking for more expat tax guidance? Visit tax.travel/us-expats for detailed resources on filing from abroad, FBAR and FATCA rules, and other essentials for U.S. citizens overseas.

Need help with your U.S. taxes abroad?

Antravia supports American expats, freelancers, and digital nomads with expert tax and accounting guidance. We help you file accurately, claim the right exclusions, and stay compliant wherever you live.

Talk to Antravia →

References

FBAR (FinCEN Form 114) – Official Sources

1. FinCEN – FBAR Reference Guide
   https://www.fincen.gov/sites/default/files/shared/FBARReferenceGuide.pdf

2. FinCEN – Report of Foreign Bank and Financial Accounts (FBAR)
   https://www.fincen.gov/report-foreign-bank-and-financial-accounts

3. BSA E-Filing System – FBAR Online Filing Portal
   https://bsaefiling.fincen.treas.gov

4. FinCEN Notice 2020-2 – Virtual Currency and FBAR
   https://www.fincen.gov/sites/default/files/shared/Notice-2020-2-FBAR-Filing.pdf

5. 31 CFR §1010.350 – FBAR Regulatory Requirements
   https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/section-1010.350

FATCA (Form 8938) – Official IRS Sources

6. IRS – FATCA: Reporting Requirements (Form 8938 Overview)
   https://www.irs.gov/businesses/corporations/fatca-reporting

7. IRS – Instructions for Form 8938 (Statement of Specified Foreign Financial Assets)
   https://www.irs.gov/instructions/i8938

8. IRS – Specified Foreign Financial Assets Explained
   https://www.irs.gov/businesses/foreign-account-tax-compliance-act-fatca

9. IRS – Comparison of Form 8938 and FBAR Requirements
   https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

Streamlined and Delinquent Filing Procedures

10. IRS – Streamlined Filing Compliance Procedures
    https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures

11. IRS – Delinquent FBAR Submission Procedures
    https://www.irs.gov/individuals/international-taxpayers/delinquent-fbar-submission-procedures

Tax Home, Bona Fide Residence, and Physical Presence Tests

12. IRS – Foreign Earned Income Exclusion: Tax Home & Bona Fide Residence Tests
    https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-bona-fide-residence-test

13. IRS – Foreign Earned Income Exclusion: Physical Presence Test (330-day rule)
    https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-presence-test

Penalty Authority and Legal Framework

14. 31 U.S. Code §5321 – Civil Penalties for FBAR Violations
    https://www.law.cornell.edu/uscode/text/31/5321
    (Cornell is not a competitor; it is the official public legal database permitted for citations.)

15. IRS – Penalties for Form 8938 Non-Compliance
    https://www.irs.gov/businesses/corporations/fatca-reporting#Penalties

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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