The Foreign Bank Account Report (FBAR) is a critical filing requirement for US expatriates who hold financial accounts outside the United States. Failure to file can lead to severe penalties. In this article we explain who needs to file, how to determine if you meet the filing threshold and best practices for staying compliant.
Who Must File?
If the aggregate value of your foreign accounts exceeds $10,000 at any time during the year, you must file FinCEN Form 114 (FBAR).
Reporting Deadlines
The FBAR is due on April 15 with an automatic extension to October 15. Keep records of all foreign accounts, including bank statements, to ensure accurate reporting.
Penalties
Non‑willful failures may incur penalties of up to $10,000 per violation, while willful failures can result in much steeper penalties. Working with experienced advisors will help you avoid costly mistakes.