What is the FBAR and who must file?
The FBAR (Report of Foreign Bank and Financial Accounts, FinCEN Form 114) is an annual information report that U.S. persons must file directly with FinCEN when they have a financial interest in, or signature or other authority over, one or more financial accounts located outside the United States and the aggregate value of those accounts exceeded $10,000 at any time during the calendar year. U.S. persons include citizens, green-card holders, and certain residents or entities (corporations, partnerships, trusts, estates). This requirement applies regardless of whether the accounts generated taxable income or whether a U.S. tax return is due for the year. Expats commonly hold foreign bank, securities, brokerage, and pension accounts that trigger the rule; the test uses the maximum value reached in each account during the year, then aggregates across all non-U.S. accounts. Even a single day above the threshold counts.
How and when do you file an FBAR?
Unlike Form 8938 or other IRS schedules, the FBAR is not attached to your Form 1040 and is not filed with the IRS. It is submitted electronically through the BSA E-Filing System (FinCEN’s Bank Secrecy Act portal) using FinCEN Form 114. For the 2025 calendar year, the FBAR is due April 15, 2026, with an automatic extension to October 15, 2026, no separate extension request is required. Late filing is still possible in many cases, but penalties can apply once the IRS or FinCEN asserts non-compliance. Professional preparers often handle the electronic submission and maintain the required records (account statements showing high balances) for five years.
What are the penalties for missing FBARs?
Missing or incorrect FBARs are among the most frequent compliance gaps for Americans abroad. Non-willful violations can result in civil penalties up to approximately $16,536 per violation (inflation-adjusted). Willful failures carry much steeper penalties, up to the greater of $165,353 or 50 percent of the account balance per year, plus possible criminal exposure. The IRS and FinCEN have increased enforcement focus on foreign accounts. Filing through the Streamlined procedures (when eligible) or correcting prior years with a qualified preparer can mitigate or eliminate penalties in non-willful cases.
Related FATCA and tax-return reporting
You may also need to file IRS Form 8938 (FATCA) when its higher thresholds are met; the two forms overlap but are not identical in scope, thresholds, or deadlines. Both can (and often do) apply in the same year for expats. FBAR obligations are also frequently coordinated with your annual Form 1040, FEIE claims, and state filings. See the US expat tax returns service and Form 8938 page for details. A specialist can determine exactly which reports apply to your situation and prepare the filings together.
FBAR vs Form 8938 at a glance
The FBAR and Form 8938 are frequently confused but serve different purposes and have different triggers. Many expats must file both in the same year.
| Aspect | FBAR (FinCEN 114) | Form 8938 (FATCA) |
|---|---|---|
| Filed with | FinCEN (BSA E-Filing System), not the IRS | IRS (attached to Form 1040) |
| Trigger (abroad) | Aggregate foreign accounts > $10,000 at any time in the year (max value per account, USD) | Higher thresholds: e.g. single abroad >$200k last day or >$300k any time (MFJ $400k/$600k); presence tests apply |
| Assets covered | Financial accounts (bank, brokerage, certain pensions/annuities with cash value) | Specified foreign financial assets (SFFAs) including accounts, stocks/securities, financial instruments, interests in foreign entities, certain trusts/pensions |
| Penalties (non-willful) | Up to ~$16,536 per violation (inflation-adjusted); higher for willful + possible criminal | $10,000 initial, +$10,000 per 30 days after notice (capped $60k+); separate from FBAR |
| Due | April 15 + auto Oct 15 extension (calendar year) | With timely 1040 (incl. extensions); no separate extension |
Real estate held directly is generally not reportable on either; indirect ownership through a foreign entity often is for 8938. A preparer models both obligations together because the definitions, thresholds, and filing mechanics differ. See the FBAR vs Form 8938 FAQ for more.