Although worldwide income must be reported on your tax return, it is legal to have money and/or assets overseas. Depending on the nature of the account or property abroad, it is important to understand the differences and requirements of each. U.S. citizens utilize IRS Form 8938 when reporting the ownership of specified foreign assets, and a FBAR (Foreign Bank Account Reporting TD F 90-22.1) for certain foreign bank accounts.
Form 8938 was designed to aid in tax administration, while the FBAR was designed to aid in law enforcement. The filing dates and administrative agencies are different but some of the required information may be the same.