Form 8938, also known as the Statement of Specified Foreign Financial Assets, and Foreign Bank Account Reporting (FBAR) are both aimed at reporting foreign financial accounts, but they have some key differences:
Reporting Requirements: Form 8938 is required to be filed with your annual tax return to report specified foreign financial assets if their total value exceeds certain thresholds. FBAR, on the other hand, is filed separately from your tax return and is required if you have a financial interest in or signature authority over foreign financial accounts, and if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
Thresholds: The thresholds for reporting are different for each form. Form 8938 thresholds vary depending on filing status and whether you are living in the U.S. or abroad. FBAR has a fixed threshold of $10,000, regardless of filing status.
Types of Assets: Form 8938 covers a broader range of assets beyond just bank accounts, including stocks, securities, interests in foreign entities, and certain foreign insurance contracts. FBAR specifically focuses on foreign bank accounts, as well as other types of financial accounts like investment accounts, mutual funds, and certain types of foreign retirement accounts.
Filing Deadline: Form 8938 is typically due with your annual tax return, while FBAR is due by April 15th of the following year, with an automatic extension available until October 15th.
Overall, while both forms serve to report foreign financial assets, they have distinct requirements and purposes, and it's important to understand and comply with the requirements of each.
Learn more about FBAR and FATCA filing here: FBAR vs. Form 8938: Which Should You File?