Question 1

What is an FBAR and who needs to file one?

Accepted Answer

FBAR (FinCEN Form 114) is a report filed with the US Treasury for US persons who have foreign bank accounts with an aggregate value exceeding $10,000 at any time during the calendar year. This includes checking, savings, investment, and pension accounts. It applies to US citizens, residents, and green card holders living abroad.

Question 2

What is the FBAR filing deadline?

Accepted Answer

The FBAR deadline is April 15, with an automatic extension to October 15, no extension request needed. Unlike tax returns, FBARs are filed electronically through FinCEN's BSA E-Filing System, not with the IRS. There is no fee to file. Missing the deadline without reasonable cause can result in a non-willful penalty of up to roughly $10,000 per report (inflation-adjusted to about $16,500), not per account.

Question 3

What is the difference between FBAR and FATCA?

Accepted Answer

FBAR (FinCEN 114) is filed with the Treasury Department for aggregate foreign accounts over $10,000. FATCA (Form 8938) is filed with the IRS alongside your tax return for foreign financial assets over $200,000 (or $400,000 for joint filers) living abroad. Many expats must file both. They have different thresholds and report to different agencies.

Question 4

What are the penalties for not filing an FBAR?

Accepted Answer

Non-willful FBAR violations carry a penalty of up to roughly $10,000 per report per year (inflation-adjusted to about $16,500). In Bittner v. United States (2023) the Supreme Court held that the non-willful penalty applies per annual report, not per unreported account. Willful violations can result in penalties up to $100,000 or 50% of the account balance, whichever is greater, plus potential criminal charges. The IRS offers the Streamlined Filing Compliance Procedures for those who were unaware of the requirement, certifying non-willfulness can waive penalties.

FBAR Filing Guide

Do I Need to File an FBAR?

FBAR Deadline Calculator