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The Foreign Bank Account Report (FBAR) — aka FinCEN Form 114 — is a widely misunderstood reporting obligation. Unfortunately, failing to file it when required can lead to severe consequences.
Whether you’ll be filing for the first time ever or just want to brush up on your knowledge, we’re here to help. Below, we’ll dive into the essential elements of FinCEN Form 114, provide key background information, clarify who must file the FBAR, and more.
Zooming out: What is the FBAR?
The FBAR (Foreign Bank Account Report) is a filing requirement introduced by the Bank Secrecy Act (BSA) of 1970. Originally, the goal was to identify and deter foreign money laundering and other financial crimes.
To identify the bad actors, however, the government must look at the FBARs of anyone who meets the filing requirements. This includes many everyday, law-abiding US expats living abroad. While the vast majority of Americans who fail to file this report — or make an error on it — do so by accident, it can still result in significant penalties.
Who needs to file an FBAR?
Anyone whose foreign financial account holdings total more than $10,000 at any point during the calendar year must file an FBAR. This rule applies even if the funds are in multiple accounts.
Example: Ted, a US expat living in Australia, has three different foreign financial accounts:
- Account A: A checking account, which reached a top balance of $2,000
- Account B: A savings account, which reached a top balance of $4,000
- Account C: A brokerage account, which reached a top balance of $5,000
Because the sum of those holdings ($11,000) surpasses the $10,000 threshold, Ted must file FinCEN Form 114.
What counts as a foreign financial account?
Any account with a cash balance registered outside the US and its territories qualifies as a foreign financial account. This encompasses all bank accounts and most investment accounts, often including foreign pension or retirement plans.
Note, however, that US-based accounts with foreign financial holdings do not qualify as foreign financial accounts. For example, a retirement account with a US-based retirement plan administrator that holds an international stock market index fund would not qualify as a foreign financial account.
Beyond personal accounts
In addition to reporting their own personal accounts, those required to file an FBAR must also report any account they:
- Have signature authority over
- Control (directly or indirectly)
- Hold any other type of financial interest in
This applies even if an account isn’t registered in your name, as often happens with bank or investment accounts registered in a business or trust’s name. The good news? FinCEN Form 114 is fairly simple.
Reporting joint accounts
So, what happens if a joint account you hold with another person or persons exceeds FBAR limits? Generally, each person listed as an account holder must file the FBAR separately — with one major exception.
Married couples filing jointly do not need to file separate FBARs, as long as1:
- Both spouses have signed Form 114a, Record of Authorization to Electronically File FBARs
- The spouse who won’t be filing jointly owns all of their reportable financial accounts with the filing spouse
- The filing spouse reports all accounts jointly owned with the non-filing spouse on the FBAR
Step-by-step instructions on how to file the FBAR online
Rather than with the Internal Revenue Service (IRS), you’ll file the FBAR with the Financial Crimes Enforcement Network (FinCEN). You can securely file the relevant form, FinCEN Report 114, online through the BSA E-Filing System. Note that you must file this form online — there is no option to print and mail in the PDF.
How do I file the FBAR online in 2025?
FinCEN Form 114 is among the more straightforward US tax forms to file. It requires expats to enter their personal and contact information, as well as details for all their foreign accounts.
For each account, expats should enter the:
- Account name
- Account number
- Type of account
- Name & address of the bank or other financial institution where the account is held
- Maximum account balance during the tax year
Records of this information should be kept for at least five years after filing.
B!T tip:
When entering phone or account numbers, expats should omit any formatting like spaces, hyphens, or parentheses, and should round maximum account balances up to the nearest dollar.
Common FBAR mistakes to avoid
When filing FinCEN Form 114, make sure to steer clear of the following missteps:
- Only reporting personal financial accounts in your name, leaving out ones that you:
- Hold jointly with others
- Have signature authority over
- Directly or indirectly control
- Hold financial interest in
- Hold through a business or trust
- Leaving out information, such as the address of the foreign financial institution or the type of account
- Assuming that just because you’re married and filing jointly, only one of you needs to file. Instead, you must meet all of the criteria to qualify for this option
- Printing out the PDF and filing it along with your tax return
- Saving your progress without coming back to submit the report
- Reporting only your share of an account you own jointly rather than the total account balance
- Miscalculating the account aggregate
- Failing to convert foreign currencies into US dollars
How to calculate the FBAR exchange rate
To calculate the maximum value of your foreign financial accounts, you must convert non-dollar account balances into US dollars before entering them on FinCEN Form 114.
You can do so by referencing the Treasury Reporting Rates of Exchange for the last day of the relevant tax year. Within this table, you can search for the relevant country and currency of your foreign financial account. Then, you’ll multiply your holdings in each account by the applicable exchange rate.
What’s the FBAR deadline in 2025?
The 2025 FBAR deadline is technically the same day as the standard deadline for US tax returns: April 15th, 2025. However, all filers receive an automatic extension until October 15th.
B!T tip:
If a tax deadline ever falls on a weekend or legal holiday, the deadline automatically shifts to the next business day.
Is there an FBAR deadline extension in 2025?
Because the FBAR already has a six-month extension, requests for additional personal extensions are typically not approved. Usually, you can only receive a personal extension in very specific scenarios, such as if a natural disaster prevented you from filing on time.
How can I file for an FBAR deadline extension?
There is no need to file for the October 15th FBAR extension, as it extends automatically to anyone who misses the April 15th deadline.
If you need to file an additional extension due to outstanding personal circumstances, you can reach out to FinCEN directly at 1-703-905-3975 or FRC@fincen.gov2. They will advise you on which steps to take next. In cases of widespread natural disasters, the FinCEN and/or IRS may apply a blanket extension to those living in the affected area.
What happens if you file an FBAR late?
If you just missed the FBAR deadline, you can refer to the FinCEN website’s Late Filing page for instructions on how to file late and justify the tardiness. In cases of minor violations, FinCEN may choose not to penalize you — especially if your late filing was unintentional and you had reasonable cause for delay.
However, if you filed excessively late, have years of overdue reports, or didn’t have a reasonable cause for a delay, you are more likely to be subject to penalties.
What are the FBAR penalties for not filing?
FinCEN can levy steep penalties on those who don’t file the FBAR when required, even if it was unintentional. Penalties for non-willful (i.e. unintentional) violations start out at $10,000 per missing report, adjusted for inflation.
Willful violations, however, can incur a penalty of up to $100,000 adjusted for inflation or 50% of the maximum account balance during the year — whichever is greater3. In some cases, global US taxpayers have even been subject to criminal penalties as a result of not filing the FBAR.
The Delinquent FBAR Submission Procedures
If you were unaware of your reporting obligations, don’t panic. An amnesty program called the Delinquent FBAR Submission Procedures allows those who unintentionally fall behind on their FBARs to catch up with no additional penalty.
To qualify, you must4:
- Have filed late unintentionally (due to confusion or not being aware of the requirements)
- Apply before the IRS reaches out to you regarding late or missing FBARs
- File your last six FBARs (if applicable) & explain why they were late
FBARs filed under the Delinquent FBAR Submission Procedures may be subject to audit, so accuracy is critical. If you need to catch up on US tax returns as well, you may be a candidate for an IRS amnesty program called the Streamlined Filing Procedure.
Are foreign assets reported on FinCEN 114? FBAR vs. FATCA considerations
Americans abroad sometimes confuse the FBAR with Form 8938: the Statement of Specified Assets. Although they are both commonly filed by expats, the FBAR and Form 8938 constitute two separate reports. The FBAR was established by the Bank Secrecy Act in 1970, while Form 8938 was mandated by the 2010 Foreign Account Tax Compliance Act (FATCA).
Form 8938 is mandatory for expats with certain foreign financial assets exceeding $200,000 on the last day of — or $300,000 at any time during — the tax year. Among these certain foreign financial assets include foreign financial accounts. Therefore, someone with over $200,000 in a foreign financial account on the last day of the tax year would need to file both Form 8938 and the FBAR.
B!T tip:
The reporting threshold for Form 8938 varies if you reside stateside, or file a joint tax return with your spouse.
How does the IRS learn about foreign income?
When Congress passed FATCA in 2010, the act required all foreign financial institutions to provide the US government with account information on any and all of their US clients. As a result, identifying — and, consequently, prosecuting — FBAR and FATCA non-compliance is easier than ever.
Unfortunately, the added FATCA requirements can sometimes make it difficult for Americans to open bank accounts in foreign countries. If you plan to open a bank account abroad, research US expat-friendly foreign financial institutions in advance.
How do I know if I need to file an FBAR for sure?
If you’re still unsure whether you need to file an FBAR or how to do it, you might want to seek the assistance of a US expat tax professional. Given the hefty penalties and high rate of enforcement, it’s best to play it on the safe side — that’s where we come in.
At Bright!Tax, we’re not just experts in international tax — many of our team members are also expats themselves. As a result, we have the knowledge and experience needed to help you meet full compliance so that you can get back to enjoying your life abroad.
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