Foreign Bank Account Reporting (FBAR)


Who Files an FBAR

You are required to file an FBAR if you meet the following three criteria:

  1. You are a U.S. individual, including:
    • U.S. citizens, residents, resident aliens, permanent residents
    • Entities (i.e. corporations, partnerships, limited liability companies), estates, and laws and trusts formed or organized in the U.S. or under U.S. laws
  2. You had a financial interest in or signature authority over at least one financial account located outside of the U.S.
  3. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported

You must report foreign bank accounts:

  • Even when the account produces no taxable income
  • By answering questions on a tax return about foreign accounts and by filing an FBAR

When to File

The FBAR:

  • Is a calendar year report
  • Must be filed on or before April 15 of the year following the calendar year being reported
  • Must be filed electronically through FinCEN’s BSA E-Filing System
  • Is not filed with a federal tax return
  • Extension for filing income tax return does not extend time to file FBAR

Penalties

Failure to file a complete and correct FBAR

  • Non-willful/not due to reasonable cause: civil penalty not to exceed $10,000 per violation
  • Willful violations: the greater of $100,000 or 50% of the balance in the account at the time of the violation, for each violation

Resources

  • FBAR: IRS website