What are FBAR and FATCA reporting requirements for dual nationals living overseas in 2025?
Executive summary
Dual nationals living overseas must generally file an FBAR (FinCEN Form 114) if their aggregate foreign financial accounts exceed $10,000 at any time during the year, and may also have to file FATCA’s Form 8938 with their U.S. tax return if specified foreign financial assets exceed FATCA thresholds that depend on filing status and residence; both rules are separate and can apply together [1] [2]. Penalties for FBAR non‑compliance in 2025 can reach roughly $16,536 per non‑willful report and the greater of $165,353 or 50% of the account balance for willful violations, while FATCA failures begin with civil penalties such as $10,000 and can escalate [3] [4] [5].
1. What FBAR requires and when dual nationals must file — a hard dollar test
The FBAR is an annual report (FinCEN Form 114) filed electronically to FinCEN that applies when a U.S. person — including U.S. citizens and dual nationals — has a financial interest in or signature authority over foreign bank or similar accounts and the combined maximum value of those accounts exceeded $10,000 at any time during the calendar year; the FBAR deadline is April 15 with an automatic extension to October 15 [1] [6]. The statute cares about account location and maximum balances, not whether the account produced taxable income, and filing is required even for many routine checking or savings accounts [1] [6].
2. FATCA (Form 8938) — broader asset categories, filed with your tax return
FATCA’s individual reporting uses IRS Form 8938, which covers “specified foreign financial assets” beyond simple bank accounts — for example, foreign mutual funds, foreign-issued life insurance, stock or partnership interests, and certain foreign trusts — and must be attached to the taxpayer’s federal income tax return when the taxpayer’s foreign assets exceed FATCA’s thresholds (thresholds vary by filing status and whether you live abroad) [5] [2]. FATCA is distinct from the FBAR: filing one does not satisfy the other; dual nationals often face both requirements at the same time [2] [7].
3. Penalties and enforcement trends — steep and separate sanctions
FBAR and FATCA carry separate penalty regimes. In 2025, reporting shows FBAR non‑willful penalties can be capped around $16,536 per report while willful FBAR violations expose taxpayers to the greater of roughly $165,353 or 50% of the account balance per account; criminal penalties are also possible for willful misconduct [3] [4]. FATCA failures start with civil monetary penalties (commonly cited as beginning around $10,000 for failure to file Form 8938) and can increase if there is continued noncompliance [4] [5].
4. Practical compliance routes for dual nationals behind on filings
The IRS recognizes many taxpayers living overseas only recently learn of these obligations; programs exist to get caught up. For example, the Delinquent FBAR Submission Procedures (DFSP) and other IRS streamlining pathways provide ways for non‑willful late filers to submit past FBARs (usually six years) and recent tax returns (commonly three years) in hopes of avoiding penalties when criteria are met [5] [3]. Tax preparers and expat guides emphasize using these programs rather than ignoring obligations [8] [3].
5. Where dual nationality complicates matters — two realities collide
Dual nationals face the U.S.’s citizenship‑based taxation and reporting regime even when resident abroad; many countries also collect information via FATCA reporting from foreign financial institutions, creating parallel reporting pressure [2] [9]. That means local bank reporting to U.S. authorities can increase audit and enforcement risk for U.S. citizens abroad, and relying on a foreign bank to “report for you” does not remove the individual’s FBAR or Form 8938 duties [6] [7].
6. Common misunderstandings and what to watch for
Common errors include assuming FATCA = FBAR or that filing one form absolves the other; both are separate legal obligations with different thresholds, filing mechanisms, and covered assets [7] [2]. Another frequent mistake is underestimating how low the FBAR threshold is — $10,000 combined — which many expats hit with ordinary accounts [6]. Virtual currency and newer asset classes are increasingly treated like other foreign financial assets for reporting purposes, according to recent expat guidance [10].
7. Bottom line and next steps for dual nationals
If you are a U.S. dual national living overseas, inventory all foreign financial accounts and specified foreign assets, compare them to the FBAR $10,000 test and FATCA thresholds for your filing status and residence, and file FinCEN Form 114 and/or Form 8938 as required; if you’ve missed years, consider IRS delinquent FBAR or streamlined procedures rather than non‑filing [1] [2] [3]. For precise FATCA threshold numbers by filing status and up‑to‑date penalty figures, consult the IRS and FinCEN pages and get tailored advice from an expat tax professional because available sources do not mention every country‑specific interaction or every threshold amount in this summary [5] [1].