FBAR & FATCA: Reporting Foreign Bank Accounts to the U.S. Government

Who Needs to File?

If you are a U.S. person (citizen, green card holder, or resident alien) and have financial accounts outside the United States, you may have reporting obligations under both FBAR and FATCA.

FBAR (FinCEN Report 114)

The Foreign Bank Account Report must be filed if the aggregate value of all your foreign financial accounts exceeded $10,000 at any time during the calendar year.

Deadline: April 15, with an automatic extension to October 15
Where to file: Electronically through the BSA E-Filing System (not with your tax return)
What counts: Bank accounts, securities accounts, mutual funds, and certain life insurance policies held at foreign financial institutions

FATCA (Form 8938)

The Foreign Account Tax Compliance Act requires reporting on Form 8938 if your foreign financial assets exceed certain thresholds:

Single filers living in the U.S.: Total value exceeds $50,000 on the last day of the year, or $75,000 at any time during the year
Married filing jointly in the U.S.: $100,000 on the last day, or $150,000 at any time
Filed with: Your federal income tax return (Form 1040)

Common Situations for Korean-Americans

Many Korean-Americans maintain bank accounts in Korea for family reasons, property management, or personal savings. Common reportable accounts include:

Korean bank accounts (국민은행, 신한은행, 우리은행, etc.)
Korean investment or securities accounts (증권계좌)
Korean pension accounts (국민연금 is generally exempt, but private pensions may be reportable)
Life insurance policies with cash value held in Korea

Penalties for Non-Compliance

Penalties can be severe:

FBAR: Up to $10,000 per account per year for non-willful violations; up to $100,000 or 50% of account balance for willful violations
FATCA: $10,000 penalty for failure to file, with additional penalties up to $60,000 for continued non-filing

Important Notes

FBAR and FATCA are separate requirements — you may need to file both
Having to report an account does not necessarily mean you owe additional tax
Interest earned in foreign accounts is taxable income and must be reported on your tax return
The U.S.-Korea Tax Treaty may help avoid double taxation on certain income

If you have accounts in Korea and are unsure about your obligations, professional guidance can help you stay compliant and avoid costly penalties.