Understanding the FBAR for Americans living abroad is important for U.S. persons who hold bank, investment, or other financial accounts outside the United States. A U.S. person generally must file FinCEN Form 114, Report of Foreign Bank and Financial Accounts, when the aggregate value of foreign financial accounts in which the person has a financial interest or signature authority exceeds $10,000 at any time during the calendar year. The FBAR is filed separately from the federal income tax return. Wakrim Law Firm assists Americans abroad in evaluating FBAR filing obligations, addressing prior-year filing issues, and understanding how foreign account reporting fits within broader U.S. international tax compliance.

On This Page

Who Must File an FBAR?

The FBAR filing requirement can apply to U.S. citizens and residents even when they live permanently outside the United States. In general, a U.S. person must file an FBAR when they have a financial interest in, or signature authority over, one or more foreign financial accounts and the combined value of those accounts exceeds $10,000 at any point during the calendar year. The threshold applies to the aggregate value of all reportable foreign accounts, not separately to each account. Living abroad does not, by itself, eliminate the FBAR filing requirement.

What Foreign Financial Accounts May Need to Be Reported?

FBAR reporting can apply to different types of financial accounts maintained outside the United States. Common examples include foreign bank accounts, checking and savings accounts, brokerage and securities accounts, certain mutual funds or similar pooled funds, and certain insurance or annuity policies with a cash value. An account may be reportable even if it did not generate taxable income during the year. Whether a particular account must be reported depends on the type of account, where it is maintained, and the taxpayer’s financial interest or authority over it.

When Is the FBAR Due?

The FBAR is generally due on April 15 following the calendar year being reported. If the April 15 deadline is missed, filers receive an automatic extension until October 15 and do not need to submit a separate extension request for the FBAR. The FBAR must be filed electronically through FinCEN’s BSA E-Filing System and is separate from the taxpayer’s federal income tax return. Americans living abroad should therefore distinguish the FBAR filing deadline from any separate extension that may apply to their U.S. income tax return.

What Happens If You Missed an FBAR?

Americans living abroad who discover that they failed to file one or more required FBARs should evaluate the circumstances before submitting late filings. Depending on the taxpayer’s filing history and the reason for the failure, different compliance options may be available. In some cases, taxpayers whose failures were non-willful may qualify for the Streamlined Filing Compliance Procedures, which can include filing delinquent FBARs for prior years. Taxpayers who are already under IRS examination or criminal investigation may not be eligible for the streamlined procedures, so the facts should be reviewed carefully before choosing a compliance path.

What Is the Difference Between the FBAR and Form 8938?

The FBAR and Form 8938 are separate reporting requirements and one does not replace the other. The FBAR is filed electronically with FinCEN and generally focuses on foreign financial accounts, while Form 8938 is filed with a federal income tax return and can cover a broader range of specified foreign financial assets. The filing thresholds and categories of reportable assets are different, so some Americans living abroad may need to file the FBAR, Form 8938, or both. Each requirement should therefore be evaluated separately based on the taxpayer’s circumstances.

See the IRS comparison of Form 8938 and FBAR requirements.

FBAR Penalties and Why Compliance Matters?

Failure to file a required FBAR can result in civil penalties, and the consequences can differ significantly depending on whether the violation is considered non-willful or willful. The IRS also considers the facts and circumstances of each case, and certain reasonable-cause protections or compliance procedures may apply in appropriate situations. Because FBAR penalties are subject to specific statutory rules and annual inflation adjustments, Americans living abroad who discover a missed filing should evaluate their situation carefully before deciding how to correct it.

How a U.S. Tax Attorney Can Help With FBAR Compliance?

FBAR issues can become more complex when multiple foreign accounts, prior-year filing gaps, foreign businesses, trusts, or other international assets are involved. Wakrim Law Firm assists Americans living abroad in determining whether FBAR filing requirements apply, reviewing prior compliance, identifying potentially missing filings, evaluating available correction procedures, and addressing related U.S. international tax reporting issues. When necessary, the firm can also help clients assess potential penalty exposure and determine an appropriate path toward compliance based on their individual circumstances.

For broader guidance on filing and international reporting obligations, explore our U.S. tax services for Americans living abroad.

Frequently Asked Questions About FBAR for Americans Living Abroad

Do Americans Living Abroad Have to File an FBAR?

Possibly. Living outside the United States does not exempt a U.S. person from FBAR reporting. An FBAR is generally required when a U.S. person has a financial interest in, or signature authority over, foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. The requirement depends on the accounts and the person’s relationship to them, not simply on where the person resides.

What Types of Foreign Accounts Are Reported on an FBAR?

Reportable foreign financial accounts can include checking and savings accounts, securities and brokerage accounts, certain mutual funds or similar pooled funds, and certain insurance or annuity policies with a cash value. Whether an account is reportable depends on the type of account and where it is maintained. For example, an account held at a foreign branch of a U.S. financial institution can be reportable for FBAR purposes, while an account held at a U.S. branch of a foreign financial institution generally is not.

Do Joint Foreign Accounts Have to Be Reported on an FBAR?

Yes, joint foreign accounts can be reportable for FBAR purposes. When two or more people jointly own a foreign financial account, each person generally has a financial interest in that account and may need to report the full value of the account on an FBAR. A limited exception can apply to married couples when certain conditions are met and Form 114a is properly completed. Whether a joint account must be reported should therefore be reviewed based on the ownership structure and the filing circumstances of each person.

How Long Should I Keep FBAR Records?

FBAR filers should generally keep records related to their reportable foreign financial accounts for five years from the FBAR due date. These records should include the name on each account, the account number or other identifying designation, the name and address of the financial institution, the type of account, and the maximum value of the account during the reporting period. Keeping copies of filed FBARs can also be helpful when reviewing prior compliance.

Can I File a Late FBAR?

Yes. A late FBAR can generally be filed electronically through FinCEN’s BSA E-Filing System. The appropriate way to correct a missed FBAR depends on the taxpayer’s circumstances, including whether required U.S. tax returns were filed, whether income from the foreign accounts was properly reported, and why the FBAR was missed. Some taxpayers may qualify for specific delinquent FBAR or streamlined compliance procedures, while others may require a different approach. For that reason, Americans living abroad with unfiled FBARs should evaluate the available options before submitting late filings.

Speak With a U.S. Tax Attorney About FBAR Compliance

Americans living abroad who are unsure whether they have met their FBAR obligations, or who have missed prior-year filings, may benefit from reviewing their situation before taking corrective action. Wakrim Law Firm assists clients with FBAR compliance, delinquent filings, international information reporting, and related U.S. tax matters involving foreign accounts and assets. Each case is evaluated based on the taxpayer’s filing history, foreign financial interests, and individual circumstances.

Schedule a Consultation