FBAR Articles & Guides | Tax Professionals LLC

FBAR Basics

What Is the FBAR? A Complete Introduction to FinCEN Form 114

The Foreign Bank Account Report (FBAR), formally FinCEN Form 114, is a disclosure required under the Bank Secrecy Act of 1970. Unlike most tax forms, it is NOT filed with the IRS — it is filed electronically with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, via the BSA E-Filing System. The form discloses the existence of foreign financial accounts, not the income earned in them (that goes on your tax return). U.S. persons — citizens, resident aliens, domestic legal entities, and in some cases trusts and estates — must file if the aggregate maximum value of all reportable foreign financial accounts exceeded $10,000 at any time during the calendar year.

Get Filing Help →

Deadlines

FBAR Deadlines for 2025: What Every U.S. Taxpayer Must Know

The FBAR for calendar year 2024 is due on April 15, 2025. However, FinCEN provides an automatic extension to October 15, 2025 — no extension request or form needs to be submitted. This is a statutory automatic extension, unlike the tax return extension that requires Form 4868. If October 15 falls on a weekend or federal holiday, the deadline shifts to the next business day. Note: First-time filers who missed prior-year deadlines may qualify for late-filing relief under FinCEN's guidance, provided they file before they are contacted by the IRS or FinCEN. A delinquent FBAR filing made through the BSA E-Filing System with a reasonable cause explanation often avoids penalties for genuinely first-time violations.

Check My Deadline →

Penalties

FBAR Penalties in 2025: Non-Willful, Willful, and Criminal Exposure

FBAR penalties are among the most severe in U.S. tax law. For non-willful violations, the penalty is up to $10,000 per violation per year. The Supreme Court clarified in Bittner v. United States (2023) that non-willful penalties apply per form (annual report), not per account — a major taxpayer victory. For willful violations, the penalty is the greater of $100,000 or 50% of the account balance per violation per year. Courts can stack these across multiple years. In addition to civil penalties, willful FBAR violations carry criminal exposure: up to five years imprisonment and $250,000 in fines (or up to 10 years if committed in conjunction with other violations). Willfulness does not require proof of intent to violate the law — deliberate ignorance or reckless disregard is sufficient.

Assess My Risk →

Who Must File

Do You Need to File an FBAR? The Complete "Who Must File" Breakdown

A "U.S. person" for FBAR purposes includes: U.S. citizens (regardless of where they live), resident aliens (green card holders and those meeting the substantial presence test), domestic partnerships, domestic corporations, domestic LLCs, domestic estates, and domestic trusts. Foreign nationals who are non-resident aliens are generally NOT required to file. Special rules apply to spouses filing jointly (a joint FBAR may be filed), minors (parents may file on their behalf), and persons with only signature authority (certain exceptions apply, including FinCEN Notice 2020-1 relief for employees of publicly traded companies with no financial interest). The $10,000 threshold is an aggregate across ALL foreign accounts — not per account. One account with $5,000 and another with $6,000 = $11,000 aggregate = must file.

Confirm My Status →

Penalties & Relief

Streamlined Filing Compliance Procedures: A Path to Penalty Relief

The IRS Streamlined Filing Compliance Procedures offer U.S. taxpayers who have non-willfully failed to report foreign financial accounts a reduced-penalty or penalty-free path to compliance. There are two programs: the Streamlined Foreign Offshore Procedures (SFOP) for U.S. persons residing outside the U.S. — which carries zero FBAR penalty for qualifying filers — and the Streamlined Domestic Offshore Procedures (SDOP) for U.S. residents, which carries a 5% miscellaneous offshore penalty on the highest aggregate balance. Both programs require filing amended returns for 3 years and delinquent FBARs for 6 years, along with a non-willfulness certification. These programs require careful analysis — a misstep or incorrect certification can have serious consequences. Note: the Offshore Voluntary Disclosure Program (OVDP) closed in 2018, but other avenues remain.

Explore My Options →

FBAR vs. FATCA

FBAR vs. Form 8938 (FATCA): Understanding Both Requirements

FBAR (FinCEN 114) and FATCA Form 8938 are two separate foreign account disclosure regimes that often apply simultaneously — but they are not duplicates. Key differences: FBAR is filed with FinCEN via the BSA E-Filing System; Form 8938 is filed with the IRS attached to your Form 1040. FBAR covers foreign "financial accounts"; Form 8938 covers "specified foreign financial assets," which is a broader category that includes foreign stocks, partnership interests, and more. FBAR thresholds: $10,000 aggregate at any point. Form 8938 thresholds: higher — $50,000 at year-end or $75,000 at any point for single filers living in the U.S. (higher for those living abroad). Foreign financial institutions may also report your accounts directly to the IRS under FATCA — the IRS can cross-check. Filing one form does not satisfy the other, and both may require penalties for non-compliance.

Get a Dual Review →

FBAR Basics

How to Calculate the Maximum Account Value for FBAR Reporting

Determining the "maximum value" of a foreign financial account for FBAR purposes requires identifying the highest balance in the account at any point during the calendar year — using the end-of-day balance on the date of the highest value. Foreign currency must be converted to U.S. dollars using the U.S. Treasury's Financial Management Service exchange rate posted for the last day of the calendar year. If no Treasury rate is available for that currency, use another verifiable exchange rate. For accounts that are difficult to value (some retirement accounts, life insurance policies with cash value), FinCEN provides specific guidance. All FBAR reporting amounts must be in U.S. dollars. Keep records — you must retain supporting documentation for five years from the due date of the FBAR.

Get Calculation Help →

Who Must File

Foreign Retirement Accounts and the FBAR: What Expats Need to Know

Foreign retirement accounts — such as Canadian RRSPs, UK ISAs, Australian Superannuation funds, and similar vehicles — are generally reportable on the FBAR. Whether they are also reported on Form 8938 and whether the earnings are currently taxable under U.S. law depends on whether a tax treaty applies. The U.S.-Canada treaty, for example, allows deferral of RRSP taxation similar to an IRA, but the account must still be disclosed on the FBAR and Form 8938. UK ISAs do not qualify for treaty protection from U.S. income tax and are both FBAR and 8938 reportable. Foreign pension plans established by an employer may have different reporting requirements. This is one of the most complex areas of international tax compliance for U.S. expats — professional guidance is strongly recommended.

Discuss My Retirement Account →

Topic	Details
Form Name	FinCEN Form 114 (FBAR)
Filed With	FinCEN — NOT the IRS — via BSA E-Filing System
Due Date	April 15; automatic extension to October 15
Threshold	Aggregate maximum value > $10,000 at any point in year
Who Files	U.S. citizens, resident aliens, domestic entities, trusts, estates
Non-Willful Penalty	Up to $10,000 per form per year (Bittner, 2023)
Willful Penalty	Greater of $100,000 or 50% of account balance per violation
Record Retention	5 years from original FBAR due date
Statute of Limitations	6 years from the FBAR due date

FBAR Articles & Filing Guides