Guide · International
Do I need to file an FBAR?
The FBAR is one of the most commonly missed filings for people with ties abroad. Here’s what it is, who needs it, and what to do if you’re behind.
What is the FBAR?
The FBAR — the Report of Foreign Bank and Financial Accounts, filed as FinCEN Form 114 — is an annual report of foreign accounts. It isn’t a tax and it isn’t part of your tax return. It’s filed electronically with the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department.
Who has to file?
A US person must file if they had a financial interest in, or signature authority over, foreign financial accounts whose combined maximum value exceeded $10,000 at any time during the year. “US person” includes citizens, green-card holders and others who meet the substantial-presence test, as well as US entities.
The $10,000 test is aggregate. Three accounts that each peaked at $4,000 on the same day total $12,000 — and trigger a filing requirement even though no single account came close.
Which accounts count?
- Foreign bank checking and savings accounts
- Foreign brokerage and investment accounts, and foreign mutual funds
- Many foreign pension and retirement accounts, and cash-value life insurance
- Accounts where you have signature authority only — for example, a parent’s account or an employer’s account
When is it due?
April 15, with an automatic extension to October 15. You don’t need to request the extension.
FBAR vs. Form 8938
Form 8938 (FATCA) is a separate disclosure attached to your tax return, with higher thresholds that depend on your filing status and where you live. Many people must file both; some file only the FBAR.
What about penalties?
Penalties for failing to file can be severe, especially for willful violations. For non-willful violations, the Supreme Court held in Bittner v. United States (2023) that the penalty applies per report — not per account — which significantly limits exposure for many taxpayers.
I missed it. What now?
If you didn’t know about the requirement, there are established ways back into compliance: the Delinquent FBAR Submission Procedures (when all income was properly reported) and the Streamlined Filing Compliance Procedures (when unreported foreign income is also involved). Which one fits depends on your facts — so talk to a professional before you file anything.
Need help? Foreign reporting is one of our specialties. See our international tax services or book a confidential call.
This article is general information, not advice for your situation.
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