Delinquent FBAR Filing Procedures: What to Do If You Forgot to File

You didn’t skip filing your FBAR on purpose. You just didn’t know you had to. Welcome to the club.

The FBAR (that’s the Report of Foreign Bank and Financial Accounts) is one of the most commonly missed filings among U.S. expats. It’s not part of your tax return. It’s not about owing more money. But it is mandatory if your foreign accounts ever totaled more than $10,000.

Enforced by FinCEN—not the IRS—the FBAR comes with serious penalties if ignored. But if you act quickly and your oversight was non-willful, the delinquent FBAR filing procedures can help you fix the mistake with little or no penalty.

Let’s walk through what to do next.

What is the FBAR—and who needs to file?

The FBAR—FinCEN Form 114—is an annual reporting requirement for U.S. persons with money in foreign accounts. It’s not a tax form, but it is a legal obligation under the Bank Secrecy Act.

You’re required to file an FBAR if:

• You’re a U.S. citizen, green card holder, or U.S. tax resident.
• The combined balance of your foreign financial accounts exceeded $10,000 USD at any point during the year.
• You had ownership or signature authority over those accounts.

Covered accounts include:

• Checking and savings accounts
• Retirement and pension plans
• Investment accounts, mutual funds, and even some life insurance policies
• Joint accounts and business accounts, even if you’re not the sole owner

FBARs must be submitted electronically through the BSA E-Filing System, and they’re due annually—typically by April 15 (with an automatic extension to October 15).

Why it matters:

Missing the FBAR deadline—even unintentionally—can lead to serious FBAR penalties, especially if FinCEN views the non-compliance as willful. And since the FBAR is separate from your tax return, it’s easy to overlook—especially for new expats or those with foreign accounts that didn’t generate foreign income.

If you’ve missed a filing, don’t panic. The IRS and FinCEN offer specific delinquent FBAR filing procedures that allow you to catch up—often with minimal or no penalties. 

Common reasons for FBAR late filing

Most people who miss the FBAR filing requirement aren’t trying to hide anything—they just didn’t know it applied to them. If you’re feeling stressed about forgetting to file, here’s why that likely happened:

1. You didn’t know about it

If no one told you the FBAR form exists, you’re not alone. It’s filed separately from your tax return, through the BSA E-Filing System, and most tax software doesn’t prompt you unless you go looking for it.

2. You didn’t realize which accounts counted

The $10,000 threshold applies to the aggregate total of all your non-U.S. accounts—not just individual ones. And it only takes a single day over the limit to trigger the FBAR reporting requirement.

Accounts you need to report include:

• Checking and savings accounts held outside the U.S.
• Joint accounts—even if they’re primarily used by someone else
• Foreign pensions and investment accounts
• Any account where you have signature authority, even if you don’t own the funds

If your name’s on the account, FinCEN likely wants to know about it.

3. You thought it only applied if you had foreign income

Nope. The FBAR isn’t tied to income. Even if the account didn’t earn interest—or wasn’t taxed abroad—you still have to file if the balance passed the threshold.

4. You filed your tax return and thought you were done

Totally understandable. But the FBAR has its own filing deadline, its own system, and its own set of penalties. Filing your form 1040 doesn’t cover your financial account reporting obligations unless you also filed the FBAR.

What happens if you file the FBAR late?

If you’re behind on your FBARs, the penalties can sound scary—but context matters. The IRS and FinCEN distinguish between honest mistakes and intentional avoidance, and that distinction will shape what happens next.

Non-willful violations

If your missed filing was an accident—no unreported income, no attempt to hide accounts—the IRS typically classifies it as non-willful. That’s most expats and everyday taxpayers.

Penalty: Up to $10,000 per violation, per year—but in practice, the IRS may waive or reduce penalties if you come forward voluntarily.

Willful violations

If you knowingly failed to file—or ignored notices and requests for information—your case may be treated as willful.

Penalty: Up to $100,000 or 50% of the highest account balance per violation, whichever is greater, per calendar year.

In rare cases, willful violations can lead to criminal charges, especially if there’s evidence of fraud, false statements, or concealment of financial interest in unreported accounts.

How the IRS evaluates intent

Intent matters. The IRS considers:

• Whether income from those financial institutions was also unreported.
• If you’ve filed amended returns in the past.
• Whether your mistake was a one-off or part of a pattern.
• If you respond promptly once you become aware of the issue.

The takeaway? Filing late is still better than not filing at all—especially if you take action before the IRS contacts you.

Delinquent FBAR Submission Procedures (DFSP) explained

If your FBARs are late and it was an honest mistake, the Delinquent FBAR Submission Procedures (DFSP) may be your best (and lowest-stress) option. It’s designed for taxpayers whose non-compliance was non-willful—in other words, you didn’t know you had to file, but you’re ready to fix it.

Who’s eligible

You may qualify for DFSP if:

• You missed one or more FBARs.
• You reported all foreign income from those accounts.
• You’re not under IRS audit or criminal investigation.
• You’re filing before the IRS contacts you.

What you’ll need to submit

To catch up using DFSP, you’ll need to do two things:

• File up to 6 years of FBARs using FinCEN’s BSA E-Filing System.
• Include a short statement explaining your reasonable cause for missing the filings (e.g., you were unaware of the requirement).

No amended returns are needed, and in most cases, no penalties will be imposed—if you act before the IRS reaches out.

Best practices for filing under DFSP

A clean submission helps preserve your eligibility and avoid mistakes. Here’s what to keep in mind:

• Be clear and concise in your reasonable cause explanation.
• Report all required account info, including institutions and highest balances.
• Make sure names, account numbers, and financial interest details are accurate.
• Keep copies of everything you submit for your records.
• If you’re unsure, work with a cross-border tax professional to ensure compliance.

How this differs from other catch-up programs

DFSP is strictly for late FBARs. If you also failed to file international information forms (like Forms 3520 or 5471), you’ll need the Delinquent International Information Return Submission Procedures—a separate program with its own rules.

But for FBAR-only issues, DFSP is the fastest, cleanest way to fix things—and avoid civil penalties—as long as you qualify.

Streamlined filing procedures vs. DFSP

If you’re behind on FBARs, the Delinquent FBAR Submission Procedures (DFSP) may be the easiest fix—but only if you reported all your foreign income correctly. If you also forgot to report foreign income from those accounts on your U.S. tax returns, you’ll likely need a more robust solution: the Streamlined Filing Compliance Procedures.

What’s the difference?

Here’s how the two programs compare:

DFSP is for you if:

• You filed accurate U.S. tax returns.
• You just forgot the FBARs.
• No income from your foreign financial accounts was unreported.
• You’re not already under examination.
• You can file a reasonable cause statement explaining the oversight.

Streamlined filing is for you if:

• You missed FBARs and forgot to report foreign income.
• You’re willing to file amended tax returns for the past 3 years.
• You’ll submit 6 years of FBARs.
• You’re prepared to pay additional tax and interest.
• You can certify that your non-compliance was non-willful.

Domestic vs. foreign streamlined options

If you live outside the U.S. full-time, the Streamlined Foreign Offshore Procedures typically waive FBAR penalties.

If you’re a U.S. resident, the Streamlined Domestic Offshore Procedures apply—and include a 5% penalty on the highest account balances.

When to consider voluntary disclosure

If your case involves large balances, unreported income, intentionally omitted returns, or risk of audit, you may need the IRS Voluntary Disclosure Program (VDP). This is also true for those whose conduct could be seen as willful—even if unintentionally so.

The VDP requires full cooperation, payment of taxes, interest, and penalties, but it can prevent criminal investigation and protect you from the worst-case scenario.

How to submit a late FBAR the right way

Filing late is better than not filing at all—but it still needs to be done correctly. Here’s how to stay compliant and avoid unnecessary complications when submitting a past-due FBAR.

Where and how to file

All FBARs are submitted electronically through the BSA E-Filing System, part of the Financial Crimes Enforcement Network (FinCEN). You won’t file through the IRS—this is a separate system under the Bank Secrecy Act, not part of your regular income tax return.

What to include for each foreign account:

• Name and address of the foreign bank or financial institution
• Account number
• Type of account
• Maximum balance during the calendar year, converted to USD
• Whether the account is jointly held or you only have signature authority

Documentation to keep

Even after you file, you should keep backup records for at least five years:

• Monthly or year-end account statements
• Currency conversion calculations
• Any correspondence with financial institutions abroad

If the IRS requests clarification later, these records can prevent misunderstandings—or worse, penalties.

When to get professional help

You may not need expert help for every late FBAR. But getting the filing wrong—especially when you’ve also missed reporting foreign income—can trigger deeper scrutiny. It’s best to get professional help if:

• You’ve never filed an FBAR and aren’t sure which years apply.
• You reported the accounts on your return but not the FBAR.
• Your U.S. tax returns need to be amended to match your FBARs.
• You’re unsure whether your mistake might be seen as willful.
• You’re dealing with complex accounts, high balances, or foreign trusts.

Don’t wait for the IRS to catch up

Missing an FBAR isn’t the end of the world—and it’s a lot easier to fix before the IRS steps in. If you have foreign bank accounts and think you’re out of compliance, the best time to act is before the IRS does. The delinquent FBAR filing procedures are designed to help you fix the issue—quietly, cleanly, and often without penalties—if you move quickly and file accurately.

At Bright!Tax, we help U.S. expats around the world navigate these requirements with clarity and confidence. From interpreting FBAR instructions to managing amnesty filings and cross-border tax returns, we make it easier to get back on track—and stay there.

Need help catching up? Contact us to get expert support from a team that understands both U.S. tax law and life abroad.

Frequently Asked Questions