Don’t Forget About FBAR & FATCA
For many U.S. expats, the most confusing part of tax filing isn’t income reporting — it’s the extra forms required for foreign bank accounts. Two major reporting rules often cause stress and uncertainty: FBAR and FATCA.
At Expatriate Tax Returns, we make sure you understand these requirements and stay fully compliant — so you can focus on life abroad without worrying about IRS penalties.
What Is FBAR?
FBAR stands for Foreign Bank Account Report. It’s filed using FinCEN Form 114, not your regular tax return.
You must file an FBAR if the total balance of all your foreign financial accounts — including bank accounts, investment accounts, or joint accounts — exceeded $10,000 at any point during the year, even for a single day.
This requirement applies to:
- U.S. citizens and green card holders
- U.S. residents living abroad
- Those with joint or signature authority over foreign accounts
Failure to file can lead to steep penalties — up to $10,000 per violation, or more if the IRS finds willful neglect.
What Is FATCA?
The Foreign Account Tax Compliance Act (FATCA) is a separate reporting law designed to prevent offshore tax evasion. It requires U.S. taxpayers to disclose foreign financial assets on Form 8938, which is filed with your annual tax return.
FATCA applies if the total value of your foreign financial assets exceeds:
- $200,000 on the last day of the year (for expats living abroad), or
- $300,000 at any point during the year.
This includes not only bank accounts but also:
- Foreign pensions
- Investment holdings
- Certain business interests
FBAR vs. FATCA – What’s the Difference?
While they sound similar, FBAR and FATCA are separate filings with different thresholds and forms:
| Requirement | Form | Threshold | Where to File |
|---|---|---|---|
| FBAR | FinCEN Form 114 | $10,000 total balance | FinCEN (separate from IRS) |
| FATCA | Form 8938 | $200K+ for expats | Filed with IRS tax return |
Many expats must file both, depending on their accounts and assets.
Why Reporting Matters
These forms are more than paperwork — they protect you from penalties and prove transparency to both the IRS and foreign banks. Many countries now share account data with the U.S., making non-compliance easy to detect.
Our team helps you gather the right account information, file accurately, and stay fully compliant — even if you’ve missed past filings.
How Expatriate Tax Returns Can Help
Our specialists handle FBAR and FATCA filings every day. We’ll:
✅ Identify which forms you need
✅ Prepare and submit them accurately
✅ Use the Streamlined Filing Procedures if you’re catching up on missed years
✅ Ensure peace of mind and full IRS compliance
Don’t risk penalties or confusion — let real experts simplify your international filing.
👉 Learn more at expatriatetaxreturns.com
