FATCA vs FBAR: Complete Comparison for Foreign Account Reporting
FATCA (Form 8938) and FBAR (FinCEN 114) both require reporting of foreign financial accounts, but they are separate requirements with different thresholds, agencies, and penalties. Many H-1B holders with Indian accounts must file both every year.
Side-by-Side Comparison
| Feature | FBAR (FinCEN 114) | FATCA (Form 8938) |
|---|---|---|
| Agency | FinCEN (Treasury) | IRS |
| Threshold (Single) | $10,000 aggregate at any time | $50,000 year-end / $75,000 any time |
| Threshold (MFJ) | $10,000 aggregate at any time | $100,000 year-end / $150,000 any time |
| Filing method | BSA E-Filing (separate from tax return) | Attached to Form 1040 |
| Due date | April 15 (auto-extension to Oct 15) | With tax return (April 15 or extension) |
| Assets covered | Financial accounts only | Financial accounts + non-account assets |
| Penalty | $10,000 non-willful / greater of $100,000 or 50% of balance (willful) | $10,000 + up to $50,000 additional |
Which Indian Accounts Trigger Each Requirement?
Most Indian financial accounts trigger both FBAR and FATCA, but FATCA has a broader scope:
- Both FBAR and FATCA: NRE/NRO savings and FDs, Indian brokerage/demat accounts, mutual fund accounts (folio-based), PPF, EPF, NPS, LIC policies with cash value.
- FATCA only (higher threshold): Direct equity holdings in Indian companies (not held in a financial account), partnership interests, and certain insurance contracts without cash value.
The key distinction: FBAR covers accounts held at financial institutions. FATCA covers both accounts and non-account financial assets like direct stock holdings.
Filing Deadlines and Extensions
Both FBAR and Form 8938 are due on April 15. However, their extension mechanisms differ:
- FBAR: Has an automatic extension to October 15. No form is needed to request this extension — it is built into the filing system.
- Form 8938: Extends automatically with your tax return. If you file Form 4868 for a 6-month extension, Form 8938 is also extended to October 15.
Penalty Comparison: FATCA vs FBAR
FBAR Penalties
- Non-willful: $10,000 per violation
- Willful: Greater of $100,000 or 50% of balance
- Criminal: Up to $500,000 + 10 years
FATCA Penalties
- Failure to file: $10,000
- After IRS notice: $10,000/30 days (max $50,000)
- 40% penalty on undisclosed asset understatement
Do You Need to File Both? Decision Matrix
Use these thresholds to determine your filing obligations:
- Aggregate foreign accounts exceeded $10,000 at any point: File FBAR.
- Foreign financial assets exceeded $50,000 (single) at year-end or $75,000 at any point: File Form 8938.
- Both thresholds met: File both. Most H-1B holders with Indian bank accounts, PPF, EPF, and mutual funds meet both thresholds.
Filing one does not satisfy the other. They go to different agencies through different channels. Our platform auto-generates Form 8938 and provides an FBAR reminder with account details to file separately.
Frequently Asked Questions
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H1B TaxFile Team
Written by the H1B TaxFile editorial team — tax professionals and software engineers who specialize in U.S. federal tax filing for H-1B visa holders, F-1 students, and nonresident aliens.
Reviewed by a licensed CPA with international tax experience.
Disclaimer: This guide is for educational purposes only and does not constitute tax or legal advice. Tax laws are complex and change frequently. Consult a qualified tax professional for advice specific to your situation.