U.S. persons with foreign bank or financial accounts exceeding $10,000 must file the FBAR each year. Penalties for non-compliance can be severe. We help you determine whether you need to file, prepare accurate FBARs, and address any prior-year gaps.
Book a ConsultationThe FBAR (Report of Foreign Bank and Financial Accounts), officially FinCEN Form 114, is an annual information return required of U.S. persons who have a financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. The FBAR is not a tax return — it is filed with the Financial Crimes Enforcement Network (FinCEN), not the IRS, though the IRS enforces compliance.
Many taxpayers are unaware of the FBAR requirement until they hear about it from a tax professional — or receive an IRS notice. The reporting obligation applies broadly: to U.S. citizens, green card holders, resident aliens, and even non-resident aliens who meet the substantial presence test. It covers bank accounts, brokerage accounts, mutual funds, and certain foreign insurance and retirement accounts. The key takeaway: if the aggregate maximum balance of your foreign accounts exceeded $10,000 at any point during the year, you likely need to file.
Penalties for failing to file FBARs are among the most severe in U.S. tax law. For non-willful violations, penalties can reach $10,000 (adjusted for inflation) per year. For willful violations, penalties can reach the greater of $100,000 (adjusted for inflation) or 50% of the account balance — per year. The IRS offers pathways to come into compliance voluntarily, but it is critical to address this before being contacted by the IRS.
Any U.S. person with foreign financial accounts exceeding $10,000 in aggregate — regardless of where you live or where the accounts are held.
Living abroad does not exempt you from FBAR. In fact, expats commonly have foreign accounts and are among the most likely to need to file.
Accounts in your home country that you've maintained for years may now be reportable. Many new U.S. residents discover the FBAR requirement late.
Jointly held accounts with a foreign spouse, parent, or sibling count toward your $10,000 threshold — even if the money belongs to the other person.
If your business has foreign accounts, or if you have signature authority over your employer's foreign accounts, you may have a separate FBAR obligation.
If you've just learned about FBAR and realize you should have been filing, we can help you come into compliance through the IRS's voluntary disclosure or streamlined procedures.
Many new immigrants and green card holders keep accounts in their country of origin. Even a modest savings account at a foreign bank, when combined with other foreign accounts, can exceed the $10,000 threshold.
Foreign brokerage, mutual fund, and securities accounts are reportable. The value of the holdings counts toward the $10,000 threshold.
Your name on a joint account with a parent, spouse, or sibling abroad makes the full account balance reportable on your FBAR — even if you consider the money "not yours."
Certain foreign pension accounts and retirement plans are considered foreign financial accounts for FBAR purposes. The treatment depends on the specific type of plan and how it is structured.
Many people learn about FBAR from a tax professional, a news article, or a friend — and realize they have missed multiple years. The IRS provides paths to catch up without facing the maximum penalties, but it's important to act before the IRS contacts you.
Even if the money isn't yours, having the ability to sign on or direct the disposition of funds in a foreign account may trigger an FBAR filing requirement.
We work with you to identify every foreign financial account you have a relationship with — including accounts you may not think of as "financial accounts," like foreign pensions or insurance policies with cash value.
For each account, we determine the maximum balance during the calendar year in the foreign currency, then convert to U.S. dollars using the Treasury year-end exchange rate. We aggregate across all accounts to confirm the filing threshold is met.
We prepare the FBAR (FinCEN Form 114) with complete and accurate information for each reportable account and e-file it through the BSA E-Filing System. The FBAR is due April 15 with an automatic extension to October 15.
If you have missed prior-year FBARs, we evaluate your situation and recommend the appropriate compliance path — Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, or Delinquent FBAR Submission Procedures — depending on your facts, residence, and the reason for non-compliance.
Whether you're filing for the first time or need to catch up on prior years, we can help you get compliant.
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IRS Circular 230 Disclosure: Any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.
Important: Do not send sensitive personal information such as Social Security numbers or banking details through unsecured forms or email. Use our secure client portal for document uploads. The information on this page is for general informational purposes only and does not constitute professional tax advice. Every taxpayer's situation is unique — please consult with a CPA regarding your specific facts and circumstances.