Delinquent FBAR Submission Procedures: How to File Late FBARs Without Penalties

Sometimes, the only thing more overwhelming than realizing you forgot to file something is figuring out how to fix it without making it worse.

If you’ve left foreign bank accounts off your FBAR (Report of Foreign Bank and Financial Accounts), but all your foreign income was already reported on your U.S. tax return, the IRS offers a quiet way to clean things up: the Delinquent FBAR Submission Procedures.

No penalties. No long explanations. No public confessions. Just a clear process for getting back in compliance—if you meet the criteria. Let’s take a closer look at how it works.

Who is eligible to use these filing procedures?

Not everyone can take the no-penalty route—Delinquent FBAR Submission Procedures are designed for a very specific group of taxpayers.

To qualify, you must:

• Be a U.S. person (this includes citizens, green card holders, and residents) who should have filed FBARs but didn’t.
• Have no unreported foreign income—your foreign bank accounts must be squeaky clean in terms of earnings.
• Have non-willful violations only. If you forgot, misunderstood the rules, or didn’t know you had to file, you might be eligible.
• Not be under IRS criminal investigation, involved in a civil audit for FBARs, or have had FBAR penalties already assessed.
• Have no amended returns filed to report previously unreported foreign income.

Step-by-step guide to submitting Delinquent FBARs

If you missed the FBAR filing deadline but don’t owe additional tax, the Delinquent FBAR Submission Procedures may offer a clean slate—without penalties. Here’s how to do it right:

1. Gather the details for each foreign financial account

For each year you missed, you’ll need:

• Name and address of the foreign bank or institution
• Account number
• Type of account (checking, savings, securities, etc.)
• Maximum balance during the calendar year (converted to USD)
• Whether you had signature authority or a financial interest
• Whether the account was jointly held

2. File FinCEN Form 114 through the BSA e-filing system

Go to the Financial Crimes Enforcement Network’s (FinCEN) BSA e-filing portal. You’ll:

• Select FinCEN Form 114 (FBAR)
• Mark each submission as “Late”
• Indicate that the filing is being made under the Delinquent FBAR Submission Procedures
• Include a Reasonable Cause Statement in the notes section (see step 3)

3. Write a clear and specific Reasonable Cause Statement

This is your chance to explain why you didn’t file on time. Be honest, detailed, and stick to facts. Valid examples include:

• You didn’t know about the FBAR filing requirement
• You misunderstood what qualified as a foreign account
• You relied on incorrect advice from a tax preparer

4. Do NOT submit amended U.S. tax returns

These procedures are only for taxpayers who’ve:

• Reported all foreign income
• Paid any additional tax owed
• Not filed amended returns to correct foreign income

5. Double-check everything before you submit

Review your FBARs against the official FBAR instructions from FinCEN. Mistakes—even innocent ones—can lead to civil penalties or scrutiny from the IRS.

Once you’ve submitted, save the confirmation. This proves your compliance and starts the clock on the IRS’s review process (which may take months, but often ends quietly).

How to write a Reasonable Cause Statement

If you’re submitting delinquent FBARs, your Reasonable Cause Statement explains why you didn’t file on time—and it’s a key part of avoiding FBAR penalties.

According to IRS tax law, reasonable cause might include:

• Relying on a qualified CPA or tax advisor who didn’t inform you of your FBAR obligation.
• Misunderstanding the requirement to report foreign bank accounts, especially if you had no unreported income.
• Unexpected life circumstances, such as serious illness or natural disasters, that impacted your ability to file.

Keep your statement short, factual, and focused on your filing requirements. Make sure it clearly ties your explanation to the specific years and accounts involved—particularly if you held a financial interest or signature authority over any foreign financial accounts.

The goal isn’t to justify non-compliance—it’s to demonstrate that the mistake was non-willful, and that you took corrective action as soon as you became aware of it.

If you’re unsure whether your situation qualifies, a quick check-in with a tax attorney or experienced tax professional can make a big difference.

Penalties you can avoid (and what still applies)

One of the biggest benefits of using the Delinquent FBAR Submission Procedures is the potential to avoid civil penalties—including the steep fines that can come with failing to report foreign financial accounts.

If you’re eligible and follow the reporting requirements correctly, the IRS will generally waive FBAR penalties, assuming there’s no unreported income and your failure to file was non-willful.

But a few caveats still apply:

• If your submission is rejected, the IRS could refer your case for audit or assessment of penalties—especially if your U.S. tax returns show red flags or inconsistencies.
• If you don’t file at all, you could lose access to any amnesty program protections and face enforcement actions under Financial Crimes Enforcement Network (FinCEN) guidelines.
• Penalties for late filing can add up quickly—particularly if the aggregate value of your foreign bank accounts exceeded the FBAR threshold ($10,000 at any point in the calendar year).

Bottom line: when done right, these procedures offer a path to get compliant without added penalties—but skipping or mishandling the process can make things worse.

When streamlined or other programs are a better fit

The Delinquent FBAR Submission Procedures are ideal for a very specific situation: you didn’t file FBARs, but you don’t have any unreported income. If that’s not your case—or if you’re unsure—you may need a different compliance route.

Here’s how to know when another program makes more sense:

1. You need to correct unreported foreign income

Use the Streamlined Filing Compliance Procedures instead. This includes both the Streamlined Domestic Offshore Procedures (SDOP) and Streamlined Foreign Offshore Procedures (SFOP), depending on where you live.

2. You’re amending past U.S. tax returns or claiming the Foreign Earned Income Exclusion (FEIE)

Streamlined procedures are required if you’re filing amended returns with changes to your income. You’ll also need to submit Form 14653 or Form 14654, depending on your residency.

3. You missed filing other international forms like Form 8938, 5471, or 3520—but your income reporting is accurate

The Delinquent International Information Return Submission Procedures may apply. These can sometimes be used in addition to delinquent FBAR submissions.

4. You think your non-compliance might be considered willful, or you’re under IRS investigation

The Voluntary Disclosure Program (VDP)—a successor to OVDP—may be the safest option. In this case, speak with a tax attorney before taking any action.

Each program has different eligibility rules, reporting requirements, and risks. Choosing the right one protects you from unnecessary penalties—and keeps your compliance on solid ground.

When to call a tax professional

Most taxpayers filing late FBARs don’t need a tax attorney—but some situations are complex enough to warrant legal backup.

You might want to call a tax attorney if:

• You’re unsure whether your FBAR non-compliance was “willful”: This is a legal grey area. If you suspect your case could raise red flags, legal guidance is essential.
• Your foreign bank accounts are large or involve business entities: High balances or ownership in foreign corporations can trigger extra scrutiny and reporting complexity.
• You’ve had past issues with the IRS or worry about criminal exposure: Prior audits, investigations, or aggressive offshore strategies make your case higher risk.

If none of these apply? A qualified expat tax professional—especially one experienced in FBAR reporting and foreign account disclosure—can guide you through the process, help you craft a strong reasonable cause statement, and make sure you don’t trigger unnecessary IRS attention.

From delinquent to done: What to expect after filing

Once you’ve submitted your delinquent FBARs through the BSA e-filing system, don’t expect fireworks—or even a confirmation. In most cases, if your reasonable cause is accepted and there are no glaring issues, the IRS won’t follow up at all.

That said, there are still a few smart steps to take:

• Keep detailed records of everything you submitted, including your FBAR form, your Reasonable Cause Statement, and any correspondence. You may need this if questions arise later—or simply for peace of mind.
• Stay on top of future reporting. Now that you’re in the clear, staying compliant with your annual filing requirements (including FBARs and income tax returns) is critical for avoiding repeat issues.
• Use your clean slate wisely. Filing late FBARs the right way reduces your audit risk, protects your finances, and opens the door to better U.S. expat tax planning moving forward.

In short? Once you’ve done it right, you can breathe easier—and move on.

Late FBARs don’t have to derail your peace of mind

Missing an FBAR deadline doesn’t make you a criminal. If your mistake was non-willful, the Delinquent FBAR Submission Procedures offer a clean, penalty-free way to get back on track—no drama, no guessing, no sleepless nights.

Need help navigating your next step? The international tax professionals at Bright!Tax specialize in helping U.S. taxpayers abroad file confidently and correctly. From FBARs to income tax returns, we make sure everything gets submitted the right way—on time, every time.

Let’s get you back in compliance—so you can focus on living your best international life.

Frequently Asked Questions