Foreign Asset Reporting (FBAR)

WHO NEEDS TO COMPLETE AN FBAR?

You need to file an FBAR if you are a US person with a financial interest in, or signature or other authority over, foreign accounts, including:

• US citizens and US resident aliens with foreign accounts
• US residents with foreign accounts
• US entities (corporations, partnerships/LLCs, trusts, estates—including disregarded entities) with a financial interest in or signature/other authority over foreign accounts

Note: Certain employees/officers with signature‑only authority may have special deadline relief.

Foreign accounts may include:

• Savings and checking accounts
• Investment/brokerage and pooled funds accounts
• Retirement or pension accounts held at foreign financial institutions
• Certain insurance or annuity policies with cash value

WHAT HAPPENS IF YOU HAVEN’T FILED?

Failure to file an FBAR can result in serious civil and, in egregious cases, criminal penalties. 

For non willful violations, penalties are generally applied per form (not per account); willful violations can be significantly higher (including up to 50% of the account balance). Penalty amounts are inflation adjusted and change periodically.

If you’ve missed filing in the past, you should correct your record and explain why the FBARs are late. You always file FBARs electronically via FinCEN’s BSA E Filing System. Depending on your facts (e.g., whether income was unreported and whether your conduct was non willful), you may use:

• Delinquent FBAR Submission Procedures (if no unreported income)
• Streamlined Filing Compliance Procedures (for non willful cases)
• IRS Criminal Investigation Voluntary Disclosure Practice (for potential willfulness)

Related: FBAR is separate from FATCA Form 8938, which is filed with your tax return and has different thresholds. You may need to file both.