FBAR (FinCEN Form 114): who must file, deadlines and penalties

15 October 2026 by SMRK Global Team | 3 min read

The Report of Foreign Bank and Financial Accounts, known as the FBAR, is filed on FinCEN Form 114. It is not a tax return and no tax is paid with it, but failing to file can carry severe penalties. It applies to US persons with an interest in, or signature authority over, foreign financial accounts.

Who must file

A "US person" for FBAR purposes includes US citizens, green card holders, people who meet the substantial presence test, and US entities such as LLCs, partnerships, corporations and trusts. You must file if the combined value of all your foreign financial accounts exceeded $10,000 at any time during the calendar year. The test is on the aggregate: ten accounts of $1,500 each trigger it.

What counts as a foreign financial account

• Bank accounts, savings and current accounts held outside the US
• Brokerage and securities accounts at foreign institutions
• Foreign mutual funds and certain pooled investment accounts
• Certain foreign insurance or annuity policies with a cash value
• Accounts over which you have signature authority, even if you do not own the money, such as an employer's account

Whether items such as digital assets or particular pension accounts are reportable can depend on specific rules, so check before assuming they are excluded.

Deadline

The FBAR is due April 15 following the calendar year being reported. There is an automatic extension to October 15, and you do not need to request it. It is filed electronically through FinCEN's BSA E-Filing System, not with your tax return.

Does a foreign-owned US LLC need an FBAR?

A US LLC is itself a US person. If the LLC has foreign accounts that cross the $10,000 aggregate threshold, the LLC has an FBAR obligation, even if its owner is not a US person. A non-US owner reporting only on their personal foreign accounts generally does not. This nuance trips up many founders, so review it each year. See our cross-border compliance service.

FBAR vs Form 8938 (FATCA)

You may need to file both, and neither replaces the other. For individuals living in the US, the Form 8938 thresholds start at $50,000 at year end (single filers); they are higher for people living abroad. Confirm the current figures for your filing status.

Penalties

Non-willful failure to file can bring a penalty of over $16,000 per violation after inflation adjustments. Willful violations can lead to penalties of the greater of a much larger fixed amount or 50% of the account balance, and in serious cases criminal charges. The IRS has streamlined procedures for people who missed filings non-willfully; using them correctly matters.

If you missed an FBAR

1. Stop and gather your account statements for each missed year
2. Determine whether the omission was non-willful
3. Speak to a qualified adviser before filing late, because the route you take affects the penalty exposure
4. File the delinquent reports and keep proof

Keep records of foreign accounts for at least five years. Our tax preparation team can review whether you need to file and prepare the reports.

Frequently asked questions

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• Key US tax deadlines every small business should track

This article is general information, not tax or legal advice. Rules change, so confirm details for your situation with a qualified professional.

What the FBAR is and how it is filed

The FBAR is the common name for FinCEN Form 114, the Report of Foreign Bank and Financial Accounts. It is filed electronically through the BSA E-Filing System of the Financial Crimes Enforcement Network, not with the IRS tax return. The report identifies the filer, then lists each foreign account with the name and address of the institution, the account number and the maximum value during the year. You can file for yourself or authorize a professional to file for you.

The filing deadline is April 15 for the prior calendar year, with an automatic extension to October 15 and no separate request needed. Because the FBAR is about reporting, not paying tax, there is nothing to pay when you file, but the penalties for failing to file can be severe.

Financial interest and signature authority

You must report an account if you have a financial interest in it or signature authority over it, even if the money is not yours. A financial interest includes being the owner of record, holding the account for someone else as an agent, or owning more than 50% of an entity that is the owner of record. Signature authority exists when you can control disposition of assets by communicating with the bank, such as an employee with authority over a company account.

This matters for business owners. A US company with an account abroad has its own FBAR duty, and individuals who sign on that account may have duties of their own, subject to certain exceptions. We review each person's role and file for each person or entity that must report.

Which accounts count

• Bank accounts, including checking and savings.
• Securities and brokerage accounts held abroad.
• Mutual funds and similar pooled investments.
• Certain insurance or annuity policies with cash value.
• Accounts held with foreign payment or fintech providers that act as financial institutions.

Digital asset and crypto reporting rules are still developing, so we check current guidance when these are involved. Accounts held at foreign branches of US banks are also generally reportable, while accounts at US branches of foreign banks are generally not.

Working out the value to report

The $10,000 threshold is based on the combined maximum value of all foreign accounts at any point in the year, not on the balance at year end. Each account's maximum value is converted to US dollars using the Treasury Department's year-end exchange rate. A person with three accounts of $4,000 each can have a filing duty even though no single account passes the limit. We build a simple schedule of balances so that totals are calculated consistently.

Joint accounts, spouses and entities

If two people hold a joint account, each may need to report it, with some exceptions for spouses who file together. Trusts, partnerships and corporations can have their own filing duty when they hold foreign accounts. Where a corporation owns accounts for several subsidiaries, a consolidated filing may be possible, depending on ownership. These cases are often misunderstood, so we map the account structure before deciding who files.

Penalties and how they are applied

A person who fails to file may face civil penalties. For non-willful failures, a Supreme Court decision in 2023 held that the maximum penalty applies per late report and not per account. For willful failures, the penalty can be the greater of an inflation-adjusted amount or 50% of the account balance, and criminal penalties may apply in serious cases. The distinction between willful and non-willful depends on facts and intent, which is why a careful, documented response matters. Our late filing penalties guide explains how penalties work for another common international form.

If you missed an FBAR: remediation options

Many people miss the FBAR because they did not know it existed. The right response depends on whether the failure was non-willful, whether the IRS has made contact and whether unreported income is involved. Programs such as delinquent FBAR submission procedures and the streamlined procedures for qualifying individuals may be available, and a late FBAR may be filed with a reasonable-cause statement. A tax attorney should be involved where there is a risk of willfulness. We gather records, prepare the missing reports and coordinate with counsel when needed.

Record keeping

FBAR records must be kept for five years from the filing due date. Records include the name on the account, the account number, the name and address of the institution, the account type and the maximum value. Keep statements or exports that support each figure, and store them with your tax records.

Examples

US citizen working abroad. A US citizen living in Dubai with a local salary account and a savings account has to check combined maximum balances each year. If the total exceeded $10,000 at any time, the FBAR is due.

US LLC owner with a foreign payment account. A US-resident owner who uses a foreign payment provider for customer receipts should confirm whether the provider is a financial institution and whether the owner has signature authority.

Student or new resident. A person who becomes a US resident during the year may have an FBAR duty for the period of residence, and the first year is a common point of confusion.

How SMRK Global helps with FBAR and FATCA

We identify your accounts, calculate maximum values, prepare and file the FBAR, and check whether Form 8938 applies on your return. If you have missed earlier years, we plan the catch-up. Our cross-border compliance service covers FBAR together with entity filings, so every form uses consistent data. Book a free consultation to begin.

More FBAR FAQs

Is the FBAR the same as FATCA? No. They are separate rules with separate forms and thresholds, though the same account can trigger both.

Do I file an FBAR if I only had an account for part of the year? Yes, if you held it at any time during the year and the combined maximum value passed the threshold.

Does a non-resident alien need to file? The FBAR applies to US persons. See doing business in the US for the rules that apply to foreign owners.