FBAR (Report of Foreign Bank and Financial Accounts)
A FinCEN Form 114 filing required of US persons who hold foreign financial accounts with an aggregate value exceeding $10,000 at any point during the year.
Detailed Explanation
The FBAR is filed electronically with the Financial Crimes Enforcement Network (FinCEN), separate from the federal income tax return. The threshold is $10,000 in aggregate across all foreign accounts on any day of the year, including bank, brokerage, mutual fund, and certain insurance accounts. Penalties for non-willful violations can reach $10,000 per violation; willful violations can incur penalties of the greater of $100,000 or 50% of the account balance per violation. The IRS Streamlined Filing Compliance Procedures provide a path to amnesty for non-willful filers who failed to report.
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Learn about International TaxationRelated Terms
FATCA (Foreign Account Tax Compliance Act)
A US law requiring foreign financial institutions and certain US taxpayers to report foreign financial accounts and assets to the IRS.
Form 8938 (Statement of Specified Foreign Financial Assets)
A FATCA-related form filed with Form 1040 to report foreign financial assets that exceed specified thresholds.
IRS Streamlined Filing Compliance Procedures
An IRS amnesty program for non-willful US taxpayers who failed to report foreign financial accounts and assets, allowing catch-up filing without standard penalties.
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