If you’re a US citizen, green card holder, or resident alien with money in accounts outside the United States, the IRS isn’t the only agency that wants to hear from you. FinCEN — the Treasury’s Financial Crimes Enforcement Network — requires a separate filing that most people discover far too late. Here’s what the FBAR is, who has to file it, and what happens if you don’t.
Who Has to File an FBAR?
You’re a US person for FBAR purposes if you’re a US citizen, resident, or entity — and you have a financial interest in, or signature authority over, foreign financial accounts whose combined value exceeded $10,000 at any point during the calendar year.
That $10,000 is aggregate, not per account. Three foreign accounts with $4,000 each means you file. And ‘foreign financial accounts’ is broader than most people assume:
Bank accounts, securities accounts, and brokerage accounts held outside the US.
Foreign pension accounts and mutual funds — including accounts you can’t even touch until retirement.
Joint accounts and accounts you only have signature authority over (for example, a parent’s account you can sign on).
This catches three groups we see regularly: expats living abroad, immigrants who kept bank accounts in their home country, and foreign investors with US status who hold accounts overseas.
What and When You File
The FBAR is FinCEN Form 114, filed electronically through the BSA E-Filing System. Two facts surprise almost everyone:
It’s filed with FinCEN, not the IRS — and not with your tax return. It’s a separate filing, separate system, separate agency.
It’s due April 15 — for 2026 accounts, that’s April 15, 2027 — with an automatic extension to October 15. You don’t have to request the extension; it’s automatic. But you do have to file.
Don’t confuse the FBAR with FATCA Form 8938, which is the foreign asset disclosure attached to your tax return. They cover overlapping ground, but the thresholds are different:
FATCA Form 8938: The Higher Thresholds
Living in the US: you file Form 8938 if foreign assets exceed $50,000 on the last day of the year (or $75,000 at any time) — $100,000 / $150,000 for married couples filing jointly.
Living abroad: thresholds rise to $200,000 on the last day (or $300,000 at any time) for singles, $400,000 / $600,000 for joint filers.
Many taxpayers have to file both forms. Meeting the FBAR threshold doesn’t mean you’re done, and filing Form 8938 doesn’t cover the FBAR. Check both.
The Penalties for Missing
This is where it gets serious. FBAR penalties are per account, per year — they stack fast.
Non-willful violations: up to $10,000 per violation. ‘I didn’t know’ is not a defense that eliminates the penalty.
Willful violations: the greater of $100,000 or 50% of the account balance at the time of the violation — per year.
Missing Form 8938 carries its own $10,000 penalty, plus additional penalties if the IRS notifies you and you still don’t file.
Criminal penalties exist for willful failures to file or for filing false reports.
The willful penalty is the one that ends careers. And ‘willful’ in this context doesn’t require evil intent — the courts have found willfulness where a taxpayer simply should have known. If you’ve been filing US returns with foreign accounts and never filed an FBAR, talk to a professional before the agencies come to you. The IRS’s voluntary disclosure programs exist precisely for this situation, and coming forward on your own terms is always better than being discovered.
What to Do Now
Gather your foreign account statements for 2026 and add up the highest balance of each account — if the aggregate topped $10,000 at any point, you have an FBAR obligation.
Check whether you also meet the Form 8938 thresholds — many FBAR filers do.
Mark the dates: FBAR due April 15, 2027, automatic extension to October 15, 2027.
If you have unfiled FBARs from prior years, don’t just start filing quietly going forward — the prior years still exist. Get advice on the right disclosure path before you act.
Cross-border tax is one of our core specialties at RAMTAXES. This is work most generalist firms avoid — we do it every day.
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