FBAR Filing Requirements: Complete Guide to Foreign Account Reporting

Important Compliance Notice: The FBAR (Foreign Bank Account Report) is a mandatory disclosure for U.S. persons with foreign financial accounts exceeding $10,000 in aggregate at any time during the calendar year.

Understanding FBAR (FinCEN Form 114)

The FBAR is a separate filing from your tax return that reports foreign financial accounts to the Financial Crimes Enforcement Network (FinCEN).

Key Facts About FBAR:

  • Filed electronically through the BSA E-Filing System
  • Due April 15 with automatic extension to October 15
  • No filing fee required
  • Reports maximum account values, not year-end balances
  • Separate from but may require Form 8938 (FATCA reporting)
Who Must File an FBAR?

You must file if you meet all of these criteria:

  • U.S. person (citizen, resident, entity, or trust)
  • Financial interest in or signature authority over
  • One or more foreign financial accounts
  • Aggregate value exceeded $10,000 at any time during the year

Reportable Accounts Include:

  • Bank accounts (checking, savings, time deposits)
  • Securities/brokerage accounts
  • Mutual funds or pooled accounts
  • Certain insurance policies with cash value
  • Accounts held through foreign entities you control
FBAR Filing Requirements vs. FATCA (Form 8938)
Feature FBAR (FinCEN 114) FATCA (Form 8938)
Filing Threshold $10,000 aggregate $50,000-$600,000 depending on filing status
Due Date April 15 (Oct 15 auto extension) April 15 (with tax return)
Filed With FinCEN IRS
Account Types Financial accounts only Financial assets + certain foreign investments
How to File Your FBAR
  1. Gather account information:
    • Bank name and address
    • Account number
    • Maximum value during year (converted to USD)
  2. Create a FinCEN BSA E-Filing account
  3. Complete FinCEN Form 114 online
  4. Submit electronically (no paper filing option)
  5. Save confirmation for your records
Penalties for Non-Compliance

Non-Willful Violations

Up to $10,000 per violation

Willful Violations

Greater of $100,000 or 50% of account balance per violation

Criminal Penalties

Up to $250,000 fine and/or 5 years imprisonment

Note: The IRS has voluntary disclosure programs for previous non-compliance.

Need Assistance With FBAR Filing?

International tax compliance requires specialized expertise.

Our FBAR Services Include:

  • Comprehensive foreign account analysis
  • FBAR preparation and e-filing
  • FATCA (Form 8938) compliance
  • Voluntary disclosure assistance
  • Foreign tax credit optimization

Call 972-519-0041 today for confidential FBAR consultation

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