FATCA ≠ FBAR — You May Need to File BOTH
FBAR (FinCEN 114) and FATCA (Form 8938) are separate filings with different thresholds and different agencies. FBAR goes to the Treasury/FinCEN. Form 8938 attaches to your IRS Form 1040. Many Americans must file both. They are NOT redundant.
FATCA Filing Thresholds (Americans Abroad)
Single (Living Abroad)
File if: Total value exceeds $200,000 at year-end OR $300,000 at any point during the year.
Married Filing Jointly (Living Abroad)
File if: Total value exceeds $400,000 at year-end OR $600,000 at any point during the year.
Living in the US
Lower thresholds apply: $50,000 (single, year-end) / $75,000 (single, any time). Since you're in France, the higher thresholds apply.
If Threshold Not Met
You still may need to file FBAR if your foreign accounts exceed $10,000. The two tests are independent.
What Must Be Reported on Form 8938
- Foreign bank and financial accounts (your French BNP, Société Générale, etc. accounts)
- Foreign stocks and securities held directly (not through a US brokerage)
- Foreign partnership interests
- Foreign mutual funds (including French OPCVM, SICAV — often treated as PFICs)
- Foreign pensions and deferred compensation plans
- Any interest in a foreign entity (e.g., your French SAS, SARL, or micro-enterprise)
- Foreign-issued life insurance or annuity contracts with a cash surrender value
- Note: French PEA (Plan d'Épargne en Actions) and Assurance-Vie are NOT excluded from FATCA even if tax-advantaged in France
FATCA Penalties for Non-Compliance
Failure to File
$10,000 per year for failing to file Form 8938 when required. If you don't file within 90 days of IRS notice, an additional $10,000 per 30-day period (max $50,000).
Understatement of Tax
40% penalty on any underpayment of tax attributable to undisclosed foreign financial assets.
Statute of Limitations Extension
If you fail to file Form 8938, the normal 3-year statute of limitations for IRS audits is extended to 6 years for the entire return (not just the FATCA issue).
Reasonable Cause Exception
Penalties can be waived if you can demonstrate reasonable cause for non-filing and that the failure was not willful. Document your reasons carefully.
French Assurance-Vie & FATCA
The French assurance-vie is a popular long-term savings vehicle — but it creates significant US tax complexity. It may be treated as a PFIC (Passive Foreign Investment Company), requiring Form 8621 in addition to Form 8938. This is one area where consulting a dual-US/French tax specialist is strongly recommended before investing.
Key FATCA Resources
IRS — Official FATCA Page
IRS guidance on FATCA requirements for individuals
IRS Form 8938 Instructions
Complete IRS instructions for filing Form 8938
ExpatUSTax — FBAR vs FATCA Comparison
Clear explanation of the differences between the two reporting regimes
1040 Abroad — FATCA Reporting Service
Free FATCA reporting included with expat tax filing
Banking in France
French accounts and FATCA impact