If you filed an extension for your 2025 return, this guide explains how foreign accounts, FBAR, and FATCA fit together before you file in 2026. It is written for U.S. individual taxpayers and focuses on the two main reporting systems for foreign financial activity: FinCEN Form 114 (FBAR) and Form 8938 (FATCA). This is general education, not personalized tax advice.
Quick Takeaways
- FBAR is filed with FinCEN, not with your tax return, and the filing is due April 15, 2026 for 2025 accounts, with an automatic extension to October 15, 2026 if you miss the April deadline. No separate extension request is required.
- Form 8938 is attached to your federal income tax return, and it is due on the return due date, including extensions.
- FBAR uses a single threshold: more than $10,000 in aggregate value of foreign financial accounts at any time during the calendar year. Form 8938 uses higher thresholds that depend on filing status and where you live.
- FBAR covers foreign financial accounts. Form 8938 covers specified foreign financial assets, which can include some assets that are not in an account, such as direct foreign stock or partnership interests.
- Wealthy filers often forget about signature authority, foreign branches of U.S. banks, and duplicate reporting rules on Form 8938.
Who This Applies To
This article applies to individual U.S. taxpayers who own, control, or are otherwise connected to foreign bank, brokerage, or investment accounts in 2025, including taxpayers filing jointly, married filing separately, or living abroad. FBAR also applies more broadly to certain U.S. persons, including domestic entities, but this article stays focused on individual filers. If your account is held through a partnership, S corporation, C corporation, LLC, trust, or estate, the reporting answer can change and should be checked separately.
Introduction
The biggest mistake wealthy filers make is not that they “hide” a foreign account. It is that they forget to file the right form for the right account, or they file one form and assume that covers the other. The IRS says Form 8938 does not replace FBAR, and FBAR is filed separately with FinCEN.
For the 2025 tax year, the key questions are simple but important: Did you have foreign financial accounts? Did the aggregate maximum value exceed $10,000 at any point? Did your specified foreign financial assets exceed the Form 8938 threshold for your filing status and residency? If the answer is yes, the reporting rules may apply even if you had no tax due on the account itself.
FBAR vs. Form 8938: The Short Version
| Topic | FBAR | Form 8938 |
|---|---|---|
| Filed with | FinCEN through the BSA E-Filing System, not with your tax return. | Attached to your federal income tax return. |
| Who may have to file | U.S. persons with a financial interest in, or signature authority over, foreign financial accounts. | Specified individuals meeting a filing threshold that depends on filing status and where they live. |
| Threshold | More than $10,000 aggregate value at any time during the calendar year. | For U.S. residents: unmarried or married filing separately, more than $50,000 at year-end or more than $75,000 anytime; married filing jointly, more than $100,000 at year-end or more than $150,000 anytime. Higher thresholds apply if you live abroad. |
| What it reports | Foreign financial accounts only. | Specified foreign financial assets, including foreign accounts and some non-account assets. |
| Common non-obvious item | A foreign account at a foreign branch of a U.S. financial institution can be FBAR-reportable. | Foreign stock or securities held outside a financial account can be reportable on Form 8938, even though they are not FBAR items. |
| Due date | April 15, with an automatic extension to October 15. | Due on the tax return due date, including extensions. |
What FBAR Is and Why It Gets Missed
FBAR is the report for foreign bank, securities, and other financial accounts when the aggregate maximum value of those accounts goes over $10,000 at any time during the year. The IRS comparison page says FBAR is for U.S. persons with an interest in foreign financial accounts, and FinCEN says the form must be filed electronically using the BSA E-Filing System. Individuals can use the no-registration option.
Two details cause most mistakes:
- Aggregate value means you add the maximum values of all reportable foreign accounts together. A few small accounts can create a filing requirement even if each account alone is under $10,000.
- Signature authority can trigger FBAR even if you do not own the account. FinCEN says an FBAR filer may be filing because of signature authority over an employer’s account, and that person is not required to personally retain records for those employer accounts.
FBAR timing and records
FinCEN says the FBAR due date is April 15 each year, with an automatic extension to October 15. You do not have to request the extension. FinCEN also says you must keep records showing the account name, account number or designation, foreign institution name and address, account type, and maximum account value for 5 years from April 15 of the year following the year reported.
What Form 8938 Is and Why It Is Different
Form 8938, Statement of Specified Foreign Financial Assets, is the FATCA reporting form that goes with your tax return. The IRS says to use it when the total value of your specified foreign financial assets in which you have an interest is more than the applicable threshold.
For 2025, the most common thresholds are:
- Unmarried or married filing separately and living in the U.S.: more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year.
- Married filing jointly and living in the U.S.: more than $100,000 on the last day of the tax year or more than $150,000 at any time during the year.
- If you live outside the United States, the thresholds are higher: unmarried or married filing separately, more than $200,000 on the last day of the tax year or more than $300,000 at any time; married filing jointly, more than $400,000 on the last day of the tax year or more than $600,000 at any time.
Form 8938 is broader than FBAR. It can cover foreign financial accounts and certain non-account assets, such as foreign stock or securities not held in a financial account, foreign partnership interests, and certain foreign contracts or instruments. The IRS comparison page also says foreign stock or securities held inside a foreign financial account are not separately reported as stand-alone assets on Form 8938; the account itself is reported.
Duplicative reporting rules matter
The Form 8938 instructions say that some assets reported on a timely filed Form 3520, 3520-A, 5471, 8621, or 8865 may not have to be reported again on Form 8938, but this rule is fact-specific. If you report only part of your foreign assets on those forms, you report the remaining assets on Form 8938.
What Changed for the 2025 Tax Year
The main practical change for this filing season is timing, not a new threshold. For calendar-year 2025 accounts, FBAR is due April 15, 2026, with an automatic extension to October 15, 2026, and Form 8938 is due with your return, including any extension. The underlying thresholds and reporting structure in the official guidance remain the same framework shown above.
Common Mistakes Wealthy Filers Make
- Assuming Form 8938 replaces FBAR. It does not. The IRS says both rules can apply, and the forms are filed in different places.
- Forgetting signature authority. You may have an FBAR filing requirement even if you do not own the account.
- Missing a foreign branch account. A foreign account at a foreign branch of a U.S. financial institution can still be FBAR-reportable.
- Ignoring direct foreign investments. Foreign stock or partnership interests held outside an account can trigger Form 8938 even when there is no FBAR filing.
- Using the wrong dollar value. FBAR uses the maximum value during the year; Form 8938 uses fair market value in U.S. dollars and the threshold depends on where you live and how you file.
- Missing the recordkeeping file. FinCEN expects FBAR records to be kept for 5 years, and a copy of the filed FBAR helps satisfy that requirement.
Myth vs. fact: If the foreign account is small, there is no filing risk. Fact: A few small foreign accounts can add up to more than $10,000 in aggregate and create an FBAR filing requirement.
Practical Examples
Simplified illustration 1: three small accounts add up. You are unmarried, live in the U.S., and in 2025 you had three foreign bank accounts with maximum values of $4,500, $3,800, and $2,200. Each account is under $10,000, but the combined maximum value is $10,500, so FBAR is required. If those are your only foreign assets and your total specified foreign financial assets never exceeded $50,000 at year-end or $75,000 at any time, Form 8938 may not be required.
Simplified illustration 2: married filing jointly with one brokerage account. You and your spouse file a joint return and live in the U.S. You jointly own a foreign brokerage account that peaked at $120,000 in 2025. FBAR is required because the aggregate value is over $10,000, and Form 8938 is also required because joint filers living in the U.S. exceed the $100,000 year-end threshold.
Simplified illustration 3: signature authority only. You are an employee who can move money in your employer’s foreign account but you do not own it. FBAR can still apply because signature authority is enough to create a reporting issue, subject to FinCEN’s rules and exceptions. Form 8938 may not apply unless you also have an ownership interest or other reportable interest in specified foreign financial assets.
Simplified illustration 4: direct foreign stock ownership. You directly own $80,000 of stock in a foreign company, and the shares are not held in a foreign bank or brokerage account. That may be reportable on Form 8938 if you meet the filing threshold, but it is not an FBAR item because FBAR covers foreign financial accounts, not direct ownership of foreign stock outside an account.
Checklist: Do You Need FBAR, Form 8938, or Both?
| Question | If yes, what that usually means |
|---|---|
| Do you have a foreign bank, brokerage, or similar financial account? | Check FBAR first. If the aggregate maximum value exceeded $10,000 at any time, FBAR is likely in play. |
| Do you have signature authority over a foreign account, even without ownership? | FBAR can still apply. Check for any exceptions before filing. |
| Do you directly own foreign stock, partnership interests, or similar assets not held in a foreign account? | FBAR may not apply, but Form 8938 may. |
| Are your total specified foreign financial assets over your Form 8938 threshold? | If yes, attach Form 8938 to your return. |
| Did you also file Forms 3520, 3520-A, 5471, 8621, or 8865 for the same year? | Some duplicative reporting on Form 8938 may not be required, but the rule is fact-specific. |
| Do you need more time to file FBAR? | The extension is automatic to October 15; no separate request is required. |
When to Get Professional Help
You should strongly consider a CPA, EA, or tax attorney if you have multiple foreign accounts, live abroad, file jointly with a spouse who also has foreign assets, have signature authority for an employer or family account, own foreign entities, or are unsure whether an asset belongs on FBAR, Form 8938, or one of the international information returns. These are the kinds of facts that can change the answer and create filing or penalty risk if they are handled incorrectly.
FAQ
Do I need both FBAR and Form 8938?
Maybe. The IRS says the forms are separate and the filing requirements do not replace each other. If you meet both sets of thresholds, you may need both.
What if I only have a foreign bank account and no other foreign assets?
You may still need FBAR if the aggregate maximum value of your foreign financial accounts exceeded $10,000 at any time during the year. Form 8938 depends on the total value of your specified foreign financial assets and your filing status.
Does a foreign account at a branch of a U.S. bank count?
Yes for FBAR, according to the IRS comparison page. It is one of the non-obvious items wealthy filers often miss.
Where do I file FBAR?
With FinCEN, electronically through the BSA E-Filing System. It is not filed with your federal income tax return.
Where do I file Form 8938?
Attach it to your federal income tax return. It is due on the return due date, including extensions.
Do I have to keep records?
Yes. FinCEN says FBAR filers must keep account records for 5 years from April 15 of the year following the report year.
Bottom Line
For 2025 returns filed in 2026, the safest approach is to treat FBAR and FATCA as two separate tests. FBAR is about foreign financial accounts and a $10,000 aggregate threshold; Form 8938 is about specified foreign financial assets and thresholds that depend on filing status and residency. If you have foreign accounts, foreign brokerage holdings, direct foreign investments, or signature authority, do not assume one form covers the other. Reconcile the accounts, confirm the thresholds, and file on time before the April 15, 2026 FBAR deadline or the return due date for Form 8938.
What to do next
- List every foreign account, including accounts you own, jointly own, or can sign on.
- Add the maximum values for FBAR and compare them with the $10,000 threshold.
- Test your total specified foreign financial assets against the correct Form 8938 threshold for your filing status and residency.
- Check whether any assets are already covered by Forms 3520, 3520-A, 5471, 8621, or 8865.
- If anything is unclear, get professional help before filing.
Source note: Sources consulted: IRS forms, instructions, publications, official updates, and related guidance.
