FBAR vs FATCA: Key Differences Every US Expat Must Understand

FBAR and FATCA are often confused — and that confusion leads to some of the most expensive penalties US expats face.

While they sound similar, they are not the same law.

Understanding the difference is essential.

What Is FBAR?

FBAR (Foreign Bank Account Report) is required if:

• You are a US person, and

• Your foreign financial accounts exceed $10,000 in aggregate

FBAR is filed separately from your tax return.

Full guide:
👉 /fbar-foreign-bank-account-reporting-expats

What Is FATCA?

FATCA (Form 8938) is required if:

• You exceed higher asset thresholds

• You file a US tax return

• You hold specified foreign financial assets

FATCA is filed with your tax return.

Full guide:
👉 /fatca-form-8938-expats

FBAR vs FATCA: Side-by-Side

Many expats must file both.

Common Assets That Trigger Both

Examples include:

• Foreign bank accounts

• Foreign brokerage accounts

• Foreign pensions

• Accounts owned through foreign companies

Foreign business owners should also review:
👉 /us-expats-foreign-companies-cfc-gilti

What Happens If You Missed Filing?

Missed FBAR or FATCA filings can lead to:

• Large penalties

• IRS letters

• Stressful audits

If noncompliance was non-willful, relief may be available through:
👉 /streamlined-filing-compliance-procedures-expats

Why This Matters Long-Term

FBAR and FATCA mistakes:

• Accumulate annually

• Rarely resolve themselves

• Often surface when banks report accounts

Proactive compliance is far easier than damage control.

Clear, Human Takeaway

FBAR and FATCA aren’t about taxes — they’re about transparency.

Exemplary helps expats understand exactly what must be reported, when, and how — without unnecessary fear or overfiling.