Foreign Bank Account Reporting (FBAR): Delinquent Consequences & Options
The IRS requires taxpayers to report foreign bank accounts with an aggregate balance over $10,000. If you don't report your accounts, you can face significant penalties, but don't panic — in cases of a simple oversight, you can often get back into compliance with little trouble. To protect yourself, you need to understand the rules about foreign bank account reporting (FBAR). Ideally, if you're behind, you also need to take care of the situation before the IRS contacts you. Here is an overview of FBAR filing requirements and links to resources with more information.
Key takeaways
- The FBAR is a report of foreign bank accounts, and you must file it if your total account balances exceed $10,000.
- Penalties for not filing are $165,353 per year for willful failure to file and $16,536 for non-willful failure to file, as of 2026.
- The IRS says to file late reports as soon as possible, but as of July 2026, the agency removed guarantees about penalty waivers under the delinquent filing procedures from its website.
- Streamlined filing compliance processes can help qualifying taxpayers minimize FBAR penalty risk.
What Is the FBAR?
What does FBAR stand for? FBAR stands for foreign bank account reporting. You will also see this acronym used after the phrase Report of Foreign Bank and Financial Accounts. That's the name of the form you need to file.
How Do You File an FBAR?
To report your foreign bank accounts to the government, you must file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Don't file this form with your tax return and don't send it to the IRS. Instead, file it online with the Financial Crimes Enforcement Network (FinCEN).
When Does FBAR Need to Be Filed?
The FBAR is due the same day as your tax return — April 15th of the year following the year the balance in your foreign accounts exceeded $10,000. But every year, you have an automatic FBAR extension until October 15th. As long as you file by October 15th, your FBAR is on time.
What Information Do You Include on the FBAR?
When you file the FBAR, you will need your foreign account numbers, their highest balances during the year, and contact details for your financial institution. You should report all accounts that you have financial or signatory control over.
TaxCure Resources About Filing FBARs, Late FBARs, and More
Here are links to detailed resources with information on FBAR filing requirements, late filing penalties, and how to deal with late reports.
Resource: FBAR Reporting Requirements
Overview: If the aggregate balance in your foreign bank accounts is over $10,000 at any time in the tax year, you must file FinCen 114 (Report of Foreign Bank and Financial Accounts). You can file this form online through the BSA E-filing system of the Financial Crimes Enforcement Network (FinCEN).
Resource: Late FBAR: What Happens If You Forget to File FBAR?
Overview: If you forget to file an FBAR, you may be able to file without penalties before the IRS notices, but late filing is subject to penalties, so reach out to a tax professional for guidance. Once the IRS contacts you about an unfiled FBAR, you typically must undergo an examination. The examiner will gather details about your accounts and why you didn't file. Then, they will decide which penalties to assess. The examiner may just issue a warning with no penalties in some cases.
Resource: How to Catch Up on Delinquent FBARs
Overview: You can file the delinquent foreign bank account reports in what's known as a quiet disclosure, and the IRS may or may not decide to assess penalties. Prior to July 2026, the IRS's website advertised a delinquent submission procedure that allowed qualified taxpayers to catch up without penalties, but that guarantee is no longer available. If you're not under audit or investigation, you may qualify to use the IRS's streamlined FBAR procedures. This is generally the best option if you have unfiled tax returns or unreported foreign income in addition to the unfiled FBARs. The process varies slightly depending on whether you live in the United States or abroad. Domestic taxpayers face a penalty of just 5% of their highest balance during the disclosure period. If you are worried about criminal exposure due to wilfully not filing your FBAR, you may need to use the IRS's Criminal Investigation Voluntary Disclosure practice to catch up.
Resource: FBAR Penalties
Overview: FBAR penalties are some of the harshest penalties imposed by the IRS. There is no tax due with your FBAR, so you don't owe any back taxes if you don't file. But as of 2026, the IRS can assess non-willful civil penalties of up to $16,536 and willful non-filing penalties up to the greater of $165,353 or 50% of the account balances. Individual taxpayers have been assessed penalties well into the millions, but due to rulings in various Tax Court cases, the FBAR penalty now applies per year, not per account or form.
Resource: Reporting Requirements for Specified Foreign Assets
Overview: In addition to the FBAR requirements, the IRS requires taxpayers to report specified foreign assets. This rule applies to slightly different assets than the FBAR, and it has a higher reporting threshold. If you have specified foreign assets over the threshold for your situation, you must file Form 8938. There are severe penalties for not filing this form.
Appealing FBAR Penalties
You may have to appeal if you cannot negotiate a favorable agreement with the examiner working on your FBAR case. You can appeal both assessed and pre-assessed penalties. Keep in mind that they start to accrue interest once penalties are assessed. That is why it is often better to appeal pre-assessed penalties. You can pursue litigation if the appeals case does not go your way.
Payment Options for FBAR Penalties
Once the IRS assesses the FBAR penalties, the IRS expects you to pay them in full. But if you can't, you may be able to make arrangements. Depending on your situation, the options can include payment plans, offers in compromise, hardship status, or penalty abatement.
Get Help With FBAR
The FBAR requirements can be complicated, and the stakes are high if you're under examination. Don't deal with FBAR on your own. Get help from a tax professional who is experienced with foreign bank account reporting requirements. A tax professional can take care of unfiled FBAR reports, provide guidance through an FBAR examination, appeal FBAR penalties, or help you make payment arrangements on FBAR penalties. Use TaxCure to search for a local tax professional who can help you with FBAR today.