Short answer: The FBAR filing requirements apply to any U.S. person whose foreign financial accounts exceed $10,000 in total value at any point during the year. You report those accounts on FinCEN Form 114, which is due April 15 with an automatic extension to October 15. Missing the FBAR can trigger steep penalties, so understanding the rules early matters far more than reacting after a notice arrives.
Many people assume these rules only reach the wealthy or those hiding money offshore. In reality, a routine checking account opened while working abroad, or an inherited account overseas, can create a filing duty most taxpayers never expect. The obligation depends on the total value of your accounts, not on whether the money produced any income.
Key takeaways
- The FBAR is FinCEN Form 114, not an IRS tax form, and the threshold is $10,000 in aggregate foreign account value.
- The deadline is April 15, with an automatic extension to October 15.
- Non-willful penalties reach up to $16,536 per report; willful penalties are far higher.
- A 2023 Supreme Court decision limited non-willful penalties to one per report, not one per account.
Last updated: July 2026
What are the FBAR filing requirements?
You must file an FBAR if you are a U.S. person and the combined value of your foreign financial accounts exceeds $10,000 at any time during the calendar year. That threshold is an aggregate figure, so several small accounts can cross it together even when none exceeds $10,000 on its own [Source: FinCEN, fincen.gov]. Reportable accounts include foreign bank accounts, brokerage accounts, and certain foreign retirement or pooled funds.
The FBAR is technically FinCEN Form 114, filed electronically through the Financial Crimes Enforcement Network, not with your tax return. U.S. persons include citizens, residents, and many entities. For taxpayers with foreign investments, this obligation often overlaps with income tax issues explained in our article on passive foreign investment companies.
Which foreign accounts must be reported on the FBAR?
Reportable accounts are broader than many people expect, and the $10,000 aggregate threshold captures a wide range of holdings [Source: FinCEN, fincen.gov]. They include foreign checking and savings accounts, brokerage and securities accounts, most foreign mutual funds, and certain foreign-held retirement or pension accounts.
Importantly, the FBAR also reaches accounts you do not personally own but have signature or other authority over, such as a company account or an elderly relative’s account. That surprises many business owners and family members who assume only their own accounts count. Because the rules interact with income tax planning, these questions often reach the firm’s tax preparation and planning team as well.
When is the FBAR due?
The FBAR is due April 15, and filers receive an automatic extension to October 15 without having to request one [Source: IRS, irs.gov]. That automatic extension is a meaningful safety valve, but it does not extend the underlying obligation to keep accurate records of every foreign account.
Because the FBAR runs on the same general calendar as your income tax return, the two are easy to prepare together. Coordinating them also reduces the risk of an inconsistency that draws attention. Our overview of what to do when you receive an IRS notice covers the next steps if a question does arise.
What are the penalties for not filing an FBAR?
FBAR penalties fall into two categories, and the gap between them is wide. For violations assessed on or after January 17, 2025, the maximum non-willful penalty is $16,536 per report, an inflation-adjusted figure that started at a $10,000 base [Source: Taxes for Expats 2025, taxesforexpats.com]. Willful violations carry a penalty of the greater of $100,000, also inflation-adjusted, or 50% of the account balance.
| Violation type | Maximum penalty | Applies when |
|---|---|---|
| Non-willful | Up to $16,536 per report | The failure to file was not intentional |
| Willful | Greater of about $100,000 or 50% of the account balance | The failure was knowing or reckless |
Given that range, the willful-versus-non-willful question often decides how serious a case becomes. Determining which standard applies is a legal judgment, which is why the firm’s tax audit and litigation team takes these matters seriously from the first conversation.
What did Bittner v. United States change?
In 2023, the U.S. Supreme Court ruled in Bittner v. United States that the non-willful FBAR penalty applies per report, not per account [Source: U.S. Supreme Court, Bittner v. United States 2023]. Before that decision, the government argued for a separate penalty on each unreported account, which could turn a single late form covering ten accounts into a six-figure demand.
The ruling was a significant win for taxpayers with multiple small accounts. A person who failed to file one FBAR listing ten accounts now faces one penalty, not ten. As Anthony Kim, a former IRS Office of Chief Counsel attorney at the firm, notes: “Bittner changed the math for honest filers who simply did not know the rules. It rewards coming forward instead of punishing every account separately.” His background is detailed on his attorney profile page.
How does the FBAR connect to your income tax return?
The FBAR does not replace income tax reporting, and unreported foreign income carries its own risk. When a taxpayer omits more than $5,000 of gross income tied to foreign financial assets, the IRS gets six years instead of three to audit the return [Source: IRS Section 6501, irs.gov]. Foreign accounts can also trigger a separate FATCA disclosure on Form 8938, which has different thresholds than the FBAR.
These layers of reporting are why foreign accounts deserve careful, coordinated handling. Our article on foreign bank secrecy and U.S. tax policy explains the broader enforcement backdrop, and the firm’s San Jose office regularly advises clients with international ties.
How do you fix a late or missed FBAR?
Taxpayers who missed FBARs are often better off coming forward than waiting. The IRS offers streamlined filing compliance procedures for non-willful failures and delinquent FBAR submission procedures for those who reported all income but missed the form [Source: IRS, irs.gov]. Choosing the right path depends on the facts, especially whether the failure was willful.
A wrong choice here can be costly, because entering the wrong program can waive protections or invite scrutiny. Clients dealing with back-filing questions can review the firm’s tax resolution services and the Walnut Creek office page to understand the support available.
How a tax attorney can help with FBAR issues
A tax attorney can assess whether a past failure was willful or non-willful, select the correct disclosure program, and communicate with the IRS while protecting your rights. Because FBAR matters can intersect with criminal exposure in the most serious cases, attorney-client privilege adds a layer of protection that other advisers cannot offer.
Kim & Rosado LLP was founded by former IRS attorneys who represent individuals and businesses with international tax questions in San Jose, Walnut Creek, and across the Bay Area. If you have an unreported foreign account or a late FBAR, you can schedule a consultation or reach the team through the contact page.
Frequently asked questions
Who has to file an FBAR?
Any U.S. person, including citizens, residents, and many entities, must file if the combined value of their foreign financial accounts exceeds $10,000 at any time during the year. The threshold is aggregate, so multiple smaller accounts can trigger the requirement together.
What is the difference between the FBAR and FATCA Form 8938?
The FBAR is FinCEN Form 114, filed with the Financial Crimes Enforcement Network. Form 8938 is a FATCA disclosure filed with your income tax return and uses different, generally higher thresholds. Many taxpayers with foreign accounts must file both.
What happens if I file my FBAR late?
Late filers may qualify for the delinquent FBAR procedures if they reported all income, or the streamlined procedures for non-willful failures. Acting before the IRS contacts you generally preserves more options, and a tax attorney can identify the best route.
How much is the penalty for not filing an FBAR?
Non-willful penalties reach up to $16,536 per report for violations assessed on or after January 17, 2025. Willful penalties are the greater of roughly $100,000 or 50% of the account balance, making the willfulness question central to any case.
This article is for informational purposes only and does not constitute legal advice. Every tax situation is unique. Contact a qualified tax attorney at Kim & Rosado LLP for guidance specific to your circumstances.
Kim & Rosado LLP, San JosePhone: 408-290-0280
Kim & Rosado LLP, Walnut Creek
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