The FBAR is a mandatory annual filing for US persons with foreign financial accounts exceeding $10,000 in aggregate at any time during the year. Filed electronically on FinCEN Form 114 through the BSA E-Filing System.
11 steps across 2 sections
1. Steps Process
- Determine filing requirement — File if you are a US person AND aggregate value of ALL foreign accounts exceeded $10,000 at any time.
- Identify reportable accounts — Bank, brokerage, mutual fund, and other financial accounts at foreign institutions.
- Determine maximum account values — Find max value during year. Convert to USD using Treasury year-end rate.
- File FinCEN Form 114 electronically — File at bsaefiling.fincen.gov.
- Meet the deadline — April 15 with automatic extension to October 15.
- Maintain records — Keep records for 5 years from filing due date.
2. Key Details
- Threshold: $10,000 aggregate (ALL foreign accounts combined)
- Non-willful penalties: Up to $16,536 per violation (2025)
- Willful penalties: Greater of $165,353 or 50% of account balance
- FBAR is separate from FATCA Form 8938
- Foreign retirement accounts and life insurance with cash value may be reportable
Common Mistakes
- Not filing due to ignorance
- Not including signature authority accounts
- Using year-end balance instead of maximum value
- Confusing FBAR with FATCA Form 8938
Pro Tips
- Use Streamlined Filing Procedures to catch up without penalties if non-willful
- Cryptocurrency on foreign exchanges may be reportable