Filing FBAR Late: How to File Delinquent FBARs in 2026

Late FBAR Filing: How to Minimize Risks When Filing FBARs for Previous Years

The IRS says to file delinquent FBARs as soon as you realize you're behind, but doing so puts you at risk of penalties and potential criminal exposure if the failure to file was willful. Depending on the details, you may be better off going through the IRS's streamlined filing compliance procedures or its Criminal Investigation Voluntary Disclosure Practice.

Before moving forward, use TaxCure to find a licensed tax professional experienced with informational reports for international accounts and assets. 

Key takeaways

• IRS advice: file delinquent FBAR's as soon as possible.
• The risk: filing late exposes you to penalties, unless you qualify for reasonable cause relief.
• Penalties: $10,000+ for non-willful failure to file, $100,000+ for willful failure to file, with both tied to inflation and over $16,000 and $160,000 as of 2026
• Other options for non-willful late FBARs: streamlined filing compliance caps penalties at 5% if you qualify.
• What if failure to file was willful: a tax attorney can help you decide if the IRS's Voluntary Disclosure Practice is the right option to minimize criminal risk and penalties. 

How to File a Late FBAR: Three Options 

If you missed an FBAR reporting requirement, the IRS says, "you should file late FBARs as soon as possible to keep potential penalties to a minimum," but only if "the IRS hasn't contacted you about a late FBAR and you're not under civil or criminal investigation by the IRS." To do so, file the FBAR online for the years you missed, but be aware this may subject you to penalties. To protect yourself, you may want to check if you qualify to use the IRS's streamlined filing compliance procedures or the Criminal Investigation Voluntary Disclosure Practice if you're at risk of criminal exposure. In all cases, strongly consider consulting with an experienced tax professional.

The following sections look at how to file a late FBAR online, the streamlined compliance procedures, and the VDP in more detail. 

Filing a Late FBAR Online With the BSA E-Filing System

As long as you're not under audit or have received an IRS notice about the late FBAR, you can file foreign bank account reports (FBARs) as usual. Go to the BSA's online filing system, complete the form as usual, but make sure you note the correct tax year and use the drop-down menu to explain why you're filing late.  If you don't see an applicable reason, select "other" and note your own. If you have unreported income related to these accounts, you'll also need to amend your tax returns and pay the tax, penalties, and interest as calculated.

Prior to 2026, the IRS's delinquent FBAR submission procedures protected taxpayers from penalties in this situation. As long as you didn't have any unreported income related to the foreign accounts, you could file without incurring penalties. However, that was not part of the tax code. Rather, it was simply an IRS administrative practice. In July 2026, the IRS removed all of the details about the FBAR delinquent submission procedures from its website, indicating that this option is no longer available. Currently, the IRS's website explains, "Filing an FBAR late or not at all is a violation and may subject you to penalties." But as indicated above, the agency still urges taxpayers to file their late reports as soon as possible. 

How to Complete the FBAR Late Filing Explanation

On the first page of the FBAR, you should see a drop-down box with a list of the most common reasons for late filing:

1. Forgot to file FBAR.
2. Didn't know that you had to file FBAR.
3. Didn't realize your foreign account balances were over the reporting threshold.
4. Didn't know that your account was considered a foreign account.
5. Didn't have your account statement in time to file on time.
6. Lost your account statement and just got the replacement.
7. Missing account information.
8. Couldn't get your spouse's signature on time.
9. Unable to file the FBAR online when it was due.

If you don't see your reason for filing a late FBAR on the list, choose option "Z: other" and then write in your FBAR late filing explanation. You only have 750 characters (about 135 words), so be precise. If you're filing late because an earlier FinCEN filing waiver applied to you, note the waiver by number in the text box. Choose your answer carefully. If the IRS decides to assess FBAR penalties, you may need to rely on reasonable cause for penalty relief. That requires convincing the IRS that you acted with care, but conditions outside your control prevented you from filing on time. 

Streamlined Filing Compliance Procedures for Delinquent FBARs

The streamlined filing compliance procedures can reduce FBAR penalties, but to qualify, you must:

• not be under IRS audit or criminal investigation (even if not related to foreign accounts)
• certify that the failure to file FBARs was not willful
• have a valid taxpayer identification number (TIN) 

US residents should use the Streamlined Domestic Offshore Procedures (SDOP), while residents of foreign countries should use the Streamlined Foreign Offshore Procedures (SFOP). Amend tax returns with income related to the FBARs and note that you're filing under the "streamlined domestic offshore procedures" or foreign offshore procedures at the top of the return. Then, file the FBAR reports. 

Domestic taxpayers will incur a penalty of 5% of the highest aggregate account balance from the years involved. For instance, if you use streamlined filing compliance procedures to catch up on FBARS from 2021 to 2025 and your accounts had the highest aggregate balance in 2024, your penalty will be based on the aggregate balance on the last day of that tax year.  

How to File FBAR Under the Streamlined Procedures

The exact process can vary based on your situation, but here's an overview of the typical steps:

1. File or amend your tax returns.

File or amend your individual income tax returns for the years you didn't file or report income from your foreign accounts. For example, if you didn't report interest from one or more foreign bank accounts, report that using an amended return or a new return if you didn't file at all.  

Typically, you only need to amend the last six years of returns to get back into filing compliance, but by law the IRS can require additional years. And the rules governing FBAR reports aren't the same as most IRS forms. So, if you're dealing with more than six years of unfiled FBAR reports, reach out to a tax professional.

2. Add additional forms related to foreign income or assets.

You may need to file some of the following forms when amending your tax returns. The forms you need to file vary based on the type of foreign accounts and income you have.

• Form 3520 (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts)
• Form 3520-A (Annual Information Return of Foreign Trust With a U.S. Owner)
• Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations)
• Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business )
• Form 8938 (Statement of Specified Foreign Financial Assets)
• Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation)
• Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund )

3. Note that you're using the streamlined procedures.

When you send in your amended returns, write "Streamlined Domestic Offshore" or "Streamlined Foreign Offshore" at the top of your amended returns. Writing this ensures they get processed correctly.

4. Pay any tax owed.

Your new tax returns will lead to a higher tax liability. This is due to the unreported foreign income. You may also face failure-to-file penalties related to the unreported income. You must pay the delinquent tax liability to participate in the streamlined program. 

5. File your delinquent FBAR reports.

You also need to file the last six years of FBAR returns using FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). You must file this form online on the BSA -Efiling System. Normally, you only have to file Form 114 if the aggregate balance on your foreign accounts exceeds $10,000 during the tax year. However, if you're using the streamlined process, you need to file all six years regardless of the balances in your account for each year. 

6. Fill Out Form 114a If Needed

If someone else (including your spouse) is filing the FBAR on your behalf, you need to fill out Form 114a (Record of Authorization to Electronically File FBARs ).

7. File Form 14654 or 14653

Finally, you tie everything together with Form 14654 (Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures) or Form 14653 (Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures). You can download these forms from the IRS's website.

FBAR Penalties When You Use the Streamlined Procedures

Domestic taxpayers who use the FBAR streamlined procedures must pay a penalty of 5% of the value of their unreported accounts, instead of facing the usual FBAR penalties. Some accounts, such as certain Canadian retirement accounts, may be exempt from this fee. The fee will also apply to any unreported foreign assets covered under the Foreign Account Tax Compliance Act (FATCA).

IRS Criminal Investigation Voluntary Disclosure Practice

If you willfully failed to file an FBAR, you may need to use the IRS Criminal Investigation Voluntary Disclosure Practice. This program allows people who have committed tax-related crimes to come forward voluntarily. Using this program doesn't eliminate your criminal exposure, but the IRS looks more favorably on taxpayers who came forward on their own when reviewing cases. 

To apply for this program, submit Form 14457 (Voluntary Disclosure Practice Preclearance Request and Application). Once the IRS gives you preclearance confirmation, fill out Part II of the form within 45 days. If you're approved to participate, the IRS Criminal Investigation will send you a Preliminary Acceptance Letter.

The IRS will assign an examiner to your case, and you will work directly with them to resolve the issue. You may want to hire a tax lawyer to help with this process. 

What to Do After You File Delinquent FBAR Reports

After you file the delinquent FBAR, keep a copy of your paperwork for your records. If you file online, you may not even get a response. The IRS treats these returns the same as any other returns it gets. 

When you use the streamlined procedures, you generally will not get a response letting you know that the case has been closed, but you should receive a processing notice for the amended return that you filed. The Voluntary Disclosure Practice includes a lot of back and forth with the IRS, and you will know when your case is resolved. 

FAQs on Late FBAR Filings

What are the delinquent FBAR procedures?

They were an IRS administrative remedy that allowed taxpayers to file delinquent FBARs without penalties as long as they had reported any income related to the foreign accounts properly. The IRS removed the FBAR delinquent filing procedures from its website in July 2026 with no press releases or announcements.

Does the IRS assess penalties for delinquent FBAR submissions?

Potentially, but not always. The IRS has the authority to waive late FBAR filing penalties or not apply them at all. Previously, the agency allowed taxpayers to avoid FBAR penalties under its official delinquent FBAR submission procedures, but the agency removed that section of its website in July 2026 without any additional explanation.

How do I file delinquent foreign information returns?

If you're not under audit or criminal investigation, you can use the IRS's delinquent international information return submission procedures. Amend your tax return and include the missing foreign information returns. The IRS will assess penalties based on current practices, but for greater relief, attach a reasonable cause explanation outlining why you filed late.

Should I use the delinquent or streamlined filing procedure for late FBARs?

If you don't have any unreported income related to the foreign accounts, you may just want to file your FBAR reports without notifying the IRS, but be aware that as of July 2026, the IRS no longer guarantees penalty relief for these types of filings (previously called the "FBAR delinquent filing procedures"). If you have unreported income, you may need to use the streamlined offshore disclosure option, but only if your actions weren't willful and you're not under audit or investigation.

What's a quiet FBAR disclosure?

It's when you amend tax returns to report income related to your foreign accounts, and you file your delinquent FBAR reports, but you don't do anything else to alert the IRS about the process. While a quiet disclosure works for some, it's a risky option for others, so talk with counsel first.

Get Help With Delinquent FBAR

You don't have to navigate this process on your own. There are tax attorneys and other tax professionals with extensive experience navigating delinquent FBAR reports. With TaxCure, you can search for a pro based in your area or a more experienced pro who helps clients remotely with international tax problems. The site lets you search by area, credentials, and experience -- don't wait: contact a tax pro for help today.

Post reviewed by Sean O'Connor, a tax attorney from Connecticut, and Edward Parsons, a CPA based in Florida.