What's the Difference Between FBAR and FATCA?

FBAR and FATCA are two separate U.S. government reporting requirements for Americans who hold financial accounts or assets abroad, and you may be required to comply with both. FBAR (Foreign Bank Account Report) is filed with the Financial Crimes Enforcement Network (FinCEN) and is required if the combined balance of your foreign financial accounts exceeded $10,000 at any point during the year. FATCA (Foreign Account Tax Compliance Act) requires filing Form 8938 with your tax return if the value of your specified foreign financial assets exceeds certain thresholds — $50,000 for single filers living in the U.S., with higher thresholds for expats. The penalties for failing to file either report can be severe, ranging from $10,000 per violation for FBAR non-willful violations to much higher amounts for willful non-compliance. Both reports are separate from your tax return itself, though Form 8938 is filed along with it.