FBAR Filing Requirements: What Every Expat Needs to Know
A U.S. person generally must file a Report of Foreign Bank and Financial Accounts (FBAR) if they have a financial interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeds $10,000 during the calendar year. Account and filer exceptions can apply. U.S. persons include citizens, resident aliens and qualifying domestic entities; living abroad does not by itself remove this duty.
Identify each account, where it is maintained, your ownership or authority, and its maximum value. An account at a foreign branch of a U.S. bank can be reportable; an account at a U.S. branch of a foreign bank generally is not foreign for FBAR purposes.
Who Must File an FBAR?
Subject to applicable exceptions, a “United States person” must file an FBAR when they have a financial interest in, or signature or other authority over, foreign financial accounts and their aggregate value exceeds $10,000 at any time during the calendar year. Examples of U.S. persons include:
- U.S. citizens, regardless of where they live
- Lawful permanent residents (green card holders)
- Individuals who meet the substantial presence test
- U.S. entities — corporations, partnerships, LLCs, trusts, and estates
For example, an American living in London may need to report a British bank account with £8,000 and a separate investment account worth £3,000 if the aggregate value, converted to U.S. dollars under the FBAR rules, exceeds $10,000 and no exception applies. Determine each account’s maximum value during the year in its currency, then convert using the Treasury year-end exchange rate; if none is available, use another verifiable rate and identify its source. The threshold concerns the aggregate of foreign accounts, not a separate $10,000 limit for each account.
What Counts as a Foreign Financial Account?
Foreign financial accounts can include the following, subject to applicable definitions and exceptions:
- Bank accounts — checking, savings and time-deposit accounts maintained outside the United States
- Securities accounts — brokerage accounts maintained outside the United States that hold stocks, bonds or mutual funds
- Commodity futures and options accounts
- Insurance or annuity policies with cash value — for example, a reportable foreign cash-value life insurance policy
- Mutual funds and similar pooled funds with publicly available shares, regular net asset value determinations and regular redemptions; not every private investment vehicle is automatically covered.
- Reportable accounts holding non-cash assets — assess the type and location of the financial account; directly held precious metals do not by themselves create an FBAR filing requirement
The reporting rules extend beyond conventional bank deposits. Check whether the arrangement is a reportable financial account, where it is maintained and whether an exception applies. Direct ownership of foreign real estate or precious metals is different from holding assets in a reportable account.
FBAR Deadline and Automatic Extension
The regular FBAR due date is April 15 of the year following the calendar year reported, with an automatic extension to October 15. No extension request is required. Check current FinCEN notices for any additional relief that applies to your circumstances; filing by an applicable extended deadline avoids a late-filing violation for that report.
FBARs are generally submitted electronically through FinCEN’s BSA E-Filing System, separately from an income tax return. FinCEN may approve a paper-filing exemption on request; an obsolete form or printed electronic form is not an accepted substitute.
Joint Accounts and Signature Authority
The spouse filing exception is limited: all foreign financial accounts the nonfiling spouse is required to report must be jointly owned with the filing spouse, reported on that spouse’s timely signed FBAR, and covered by a completed and signed Form 114a authorization. Keep Form 114a in your records. If those conditions are not met, evaluate each spouse’s separate filing duty.
Signature or other authority can create a filing duty when the aggregate threshold is met, subject to regulatory exemptions and applicable extensions. Authority must involve control over asset disposition through direct communication to the institution.
FBAR Penalties: Non-Willful, Willful, and Criminal
FBAR obligations arise under the Bank Secrecy Act in Title 31, separately from federal income-tax reporting. Reporting and recordkeeping violations can result in civil penalties and, in appropriate cases, criminal penalties. The applicable treatment depends on the conduct, records and governing rules.
Non-Willful Penalties
Under Bittner v. United States, the nonwillful failure to file a compliant FBAR is penalized per report, rather than per account. The statutory $10,000 ceiling is subject to inflation adjustment. A reasonable-cause exception may apply when its conditions, including proper reporting of the account balance, are met; nonwillfulness alone does not establish reasonable cause.
Willful Penalties
For a willful failure to report an account or required identifying information, the statutory civil maximum is the greater of $100,000, adjusted for inflation, or 50% of the account balance at the time of the violation. Determine the applicable inflation-adjusted ceiling and any actual assessment under the governing rules; the statutory maximum is not an automatic assessment.
Criminal Penalties
Willful violations can also carry criminal penalties. The applicable offense and aggravating circumstances determine the potential fine and imprisonment; do not treat the highest aggravated maximum as the penalty for every filing failure.
A lawyer handling FBAR matters can assess the filing history, conduct and possible correction routes. Some options have strict eligibility and timeliness rules. Seeking advice promptly matters, but no procedure guarantees reduced penalties or immunity in every case.
FBAR vs. Form 8938 (FATCA): Key Differences
FBAR and Form 8938 are separate reporting regimes with different assets, thresholds and filing rules. The table summarizes unmarried individuals; different rules can apply to other filing statuses and to certain domestic entities. For the higher overseas thresholds, Form 8938 applies its own foreign tax-home and presence-abroad tests. A person who is not required to file an income-tax return generally need not file Form 8938, even if the asset threshold is exceeded.
| FBAR (FinCEN 114) | Form 8938 (FATCA) | |
|---|---|---|
| Filed with | FinCEN (BSA E-Filing) | IRS (attached to tax return) |
| Threshold (single U.S. residents) | More than $10,000 aggregate during the calendar year | More than $50,000 on the tax year’s last day or more than $75,000 during the year |
| Threshold (qualifying single expats) | More than $10,000 aggregate during the calendar year | More than $200,000 on the tax year’s last day or more than $300,000 during the year |
| Assets covered | Foreign financial accounts | Specified foreign financial assets, including certain accounts and non-account investments |
| Selected civil reporting penalties | Willful account-reporting violations: up to the greater of the inflation-adjusted statutory $100,000 amount or 50% of the balance at the violation | $10,000 for failure to file; continuing failure after the IRS notice period can add up to $50,000. Other penalties may apply |
| Filing deadline | April 15 (auto-extends to Oct 15) | With the income-tax return, including applicable extensions |
You may need both forms; filing one does not satisfy the other. Review the full instructions for exceptions, married-filing thresholds and valuation rules. For Form 8938, continued failure to file after 90 days from the IRS notice can trigger an additional $10,000 for each 30-day period or part of one, capped at $50,000 in additional filing penalties. Reasonable-cause rules and separate underpayment penalties must also be considered.
Passport Certification and Separate Tax Debts
Passport certification under IRC section 7345 concerns qualifying seriously delinquent federal tax debt. The 2026 inflation-adjusted threshold is more than $66,000, and statutory collection conditions and exclusions also apply.
FBAR penalties are excluded from seriously delinquent tax debt for passport certification. They are not added to underlying income tax debt to meet the threshold. Separate federal tax liabilities may qualify on their own. Americans living abroad should review any certification notice and the applicable exclusions.
Records Retention Requirements
Retain required FBAR account records for five years under the governing rules: the name in which the account is maintained, account number or other designation, foreign institution name and address, account type, and maximum value during the reporting period. Supporting statements or other records may contain this information; the rule does not categorically require every account-opening document or bank statement.
FBAR Late Filing: What to Do If You Missed the Deadline
If past reports are missing, review the filing history, income reporting and any agency contact promptly. The appropriate correction route and penalty treatment depend on the facts; coming forward does not assure reduced penalties.
Potential correction options include:
- Streamlined Filing Compliance Procedures — available to eligible individuals, including estates of individuals, who can certify nonwillful conduct and meet all other requirements. Generally, the covered periods are the most recent 3 tax-return years and 6 FBAR years whose relevant due dates have passed. The domestic procedures require previously filed returns where required, amended returns and a 5% miscellaneous offshore penalty. Qualifying foreign procedures permit delinquent or amended returns and provide specified penalty relief. Applicable tax and interest remain payable, and previously assessed penalties are not automatically abated. Living abroad alone does not establish eligibility.
- IRS Voluntary Disclosure Practice (VDP) — a route for eligible taxpayers with willful noncompliance. A timely, truthful and complete disclosure may limit prosecution exposure, but does not automatically confer immunity.
- Late FBARs — follow current IRS and FinCEN filing instructions, explain the delay and assess penalties and relief. Filing late or having no unreported income does not itself assure penalty-free treatment.
Before choosing a correction route, review any IRS examination or investigation, prior agency contact, submitted returns, omitted income and available account records. See our voluntary disclosure resource and the current IRS instructions for the option being considered.
Frequently Asked Questions About FBAR Filing
Do I need to file an FBAR if my account never reached $10,000?
Possibly. One account need not exceed $10,000 on its own: the threshold is based on the aggregate of all reportable foreign accounts. Apply the FBAR maximum-value and currency-conversion instructions. If that aggregate does not exceed $10,000, the value threshold is not met; otherwise, assess your filing duty and any applicable exception.
Does a foreign retirement account need to be reported on the FBAR?
Foreign retirement financial accounts may be reportable. Income-tax treaty deferral alone does not provide an FBAR exemption; assess FBAR-specific exceptions and the facts of the account.
Can I file an FBAR late without penalty?
Penalty relief depends on the applicable rules and facts. Follow current late-filing guidance and obtain advice about eligibility, reasonable cause and any investigation or examination. Consult a tax attorney.
What happens if the IRS discovers my unreported accounts first?
An IRS civil examination of any tax year or criminal investigation disqualifies a taxpayer from streamlined procedures. Discovery or receipt of third-party information alone is not the general streamlined exclusion; VDP has separate timeliness requirements. Assess exposure and eligibility from the actual facts.
Is cryptocurrency held on a foreign exchange FBAR-reportable?
FinCEN Notice 2020-2 states that an account holding only virtual currency is not reportable under existing FBAR regulations unless it also holds otherwise reportable assets. Check current rules and separate income-tax and Form 8938 obligations before filing; do not infer a crypto-only FBAR mandate from a stated intention to propose regulations.
Protect Yourself: Talk to an FBAR Attorney Today
Gather account statements, past tax returns and FBARs, correspondence and relevant deadlines before meeting counsel. Discuss which reporting or correction rules apply, what work is included and how fees will be charged.
Contact Segal, Cohen & Landis (SCL) today to discuss foreign account reporting. Ask counsel about confidentiality and the scope of privilege before sharing sensitive records; privilege depends on the communication and legal context.
Primary references: IRS FBAR guidance, FinCEN filing instructions, Bittner v. United States, Form 8938 instructions, streamlined procedures, IRS voluntary disclosure guidance and IRS passport guidance. Check the rules applicable to the reporting year.
Have questions about this topic? Talk to an IRS attorney today.
Segal, Cohen & Landis, P.C. — Beverly Hills. Serving clients nationwide.
Samuel Landis, Esq.
LL.M. (Tax) · Selected to Super Lawyers®
Sam Landis is a Beverly Hills IRS tax attorney specializing in IRS collection defense, audit representation, and international tax compliance for foreign nationals and US expats.