FBAR vs Form 8938: Different Thresholds, Different Agencies—Filing One ≠ Filing the Other (China Accounts)

Author: Gloria Liu, CPA ｜ YCL Tax, Accounting & Advisory

Bottom line in one breath

If you are a Chinese-American or other U.S. tax resident in Cary / RTP / Raleigh with bank or brokerage accounts in China (or elsewhere abroad): the United States runs two parallel foreign-financial disclosure regimes—FBAR (FinCEN Form 114) filed with FinCEN, and Form 8938 filed with the IRS on your tax return. Thresholds, asset scopes, due dates, and penalty frameworks differ. Filing 8938 does not replace FBAR, and vice versa. Many clients need an FBAR once China accounts aggregate over $10,000, even when they are far below Form 8938 thresholds—or they may need both. Inventory accounts now and do compliance planning.

Background

FBAR sits in the Bank Secrecy Act framework administered by FinCEN: a U.S. person with a financial interest in, or signature authority over, foreign financial accounts must e-file FinCEN Form 114 if the aggregate value exceeds $10,000 at any time during the calendar year. Form 8938 comes from FATCA and is administered by the IRS; it reports “specified foreign financial assets” with thresholds that vary by residence and filing status (for example, for a single person living in the U.S., more than $50,000 on the last day or more than $75,000 at any time). The IRS comparison chart states clearly that Form 8938 does not replace the FBAR; many taxpayers must file both. For clients holding PRC bank or securities accounts, this remains one of the most common annual compliance mix-ups.

Old vs. new (FBAR vs 8938)

These regimes have long coexisted; “contrast” here means FBAR versus Form 8938, not a brand-new statute swap.

1. Agency: FBAR → FinCEN (BSA E-Filing); 8938 → IRS (attached to the income-tax return).

2. Thresholds: FBAR → aggregate accounts >$10,000 at any time. 8938 (living in the U.S.): unmarried/MFS >$50,000 last day or >$75,000 any time; MFJ >$100,000 / >$150,000. Living abroad: unmarried/MFS >$200,000 / >$300,000; MFJ >$400,000 / >$600,000.

3. What is reported: FBAR → maximum value of financial accounts maintained by a foreign financial institution. 8938 → broader specified foreign financial assets (including certain non-account holdings such as foreign stock not held in an account, certain partnership interests, some foreign funds).

4. Signature authority: Signature authority alone often triggers FBAR but not 8938 (unless you otherwise have a reportable interest).

5. Foreign real estate held directly: generally neither form (holding through a foreign entity can create entity-interest reporting on 8938—facts matter).

6. Due dates: FBAR → generally April 15, with FinCEN’s automatic extension to October 15 (no separate request). 8938 → with the tax return (including any tax-return extension).

7. China accounts: Deposit and securities accounts at financial institutions in the PRC are typically foreign financial accounts for U.S. persons; aggregating over $10,000 can require an FBAR even when 8938 thresholds are not met.

8. Penalties: Separate civil (and potentially criminal) frameworks; FBAR civil amounts are inflation-adjusted (exact current dollars 待核 / verify). The compliance goal is timely, accurate disclosure—not picking one form.

Self-check: does this affect you?

1. You are a U.S. citizen, green-card holder, or tax resident with PRC bank or brokerage accounts.

2. Multiple accounts combined may exceed $10,000 on any day during the calendar year.

3. Your year-end or peak specified foreign financial assets may also hit Form 8938 thresholds.

4. You have signature authority on a company or family account that is not titled in your name.

5. You assumed “I already filed 8938 on my 1040, so FinCEN is covered”—that is usually wrong.

Simplified example (illustration only)

Assume Ms. Li in Cary is a U.S. tax resident, single, living in the United States:

1. A PRC bank savings high balance of about $8,000, plus other account-type balances of about $5,000 (whether every fintech product counts as an “account” is product-specific—待核), so account aggregates exceed $10,000 on some day → an FBAR may be required.

2. She is below the U.S.-resident single 8938 thresholds ($50k / $75k) → she may need FBAR only, not 8938 (unless other specified assets exist).

3. In another year she holds foreign company shares outside a brokerage account and crosses 8938 thresholds → she may need both; the same bank account can appear on both filings.

There is no one-form-fits-all answer.

Action timeline

1. Now: List all China and other foreign accounts (joint and signature-authority included); keep year-end and intra-year high statements.

2. Convert: Follow each form’s instructions to value peaks in U.S. dollars (year-end exchange-rate conventions).

3. Test thresholds separately: FBAR $10,000 line first, then 8938.

4. File on the right rails: FBAR → FinCEN BSA e-file; 8938 → with Form 1040 (and extension if any).

5. 2026 reminder: For calendar-year 2025 accounts, FBAR’s normal date is April 15, 2026, automatically extended to October 15, 2026 (Thursday); 8938 follows your 2025 return. If prior years may be missing, evaluate remediation separately—do not selectively file only the easy year.

What YCL can do

1. Inventory China/overseas accounts: financial interest vs signature authority; joint-account attribution.

2. Dual-track FBAR and Form 8938 threshold analysis and overlap mapping.

3. Support FinCEN e-file preparation and tax-return Form 8938 workpapers (current-year instructions control).

4. High-level options discussion if prior-year disclosures may be incomplete (procedure choice is facts-specific).

5. Bilingual compliance planning from Cary (RTP) and Shanghai, with CPA Chenchen Liu and Gloria, including a Free Consultation entry point.

FAQ

Q: I attached Form 8938 to my return—do I still need an FBAR?

A: Yes, if you meet FBAR tests. The IRS states that Form 8938 does not relieve the FBAR requirement, and vice versa.

Q: My China balances are only a few thousand dollars—am I clear of both forms?

A: Not necessarily. FBAR looks at the aggregate of foreign financial accounts at any time during the year. Several small accounts can cross $10,000. 8938 thresholds are usually higher but must be tested separately.

Q: Does my overseas condo go on FBAR or 8938?

A: Directly held foreign real estate is generally not reported on either form. Holding through a foreign entity can create a different reporting question—review the structure.

Book a consult

YCL Tax, Accounting & Advisory

Web: yclcpa.com ｜ Email: info@yclcpa.com

Phone: 919-802-8376 / 980-202-0666 ｜ WeChat: YCLUSA

U.S. office: 1140 Kildaire Farm Rd. STE 208, Cary, NC 27511

Shanghai office: 2-516, Zhongye Xiangteng Plaza, Lane 31, Jiatong Road, Shanghai

Free Consultation available by appointment.

Disclaimer

This article is general tax information only and is not tax, legal, or investment advice for any person or business. Application depends on account facts, signature authority, residence, filing status, currency conversion, and current IRS/FinCEN rules. Items marked 待核 require pre-filing verification. Consult a licensed professional for advice specific to you.