If you’re a U.S. taxpayer with money in foreign bank accounts or other financial accounts outside the United States, you may need to file a Foreign Bank and Financial Accounts Report (FBAR). An FBAR is an informational report submitted to the Financial Crimes Enforcement Network (FinCEN) that helps the U.S. government track certain foreign financial accounts. While filing an FBAR does not create a tax liability on its own, U.S. persons whose foreign accounts exceed certain reporting thresholds may be required to file one each year.
Who is required to file a Foreign Bank and Financial Accounts Report (FBAR)?
A U.S. person generally must file an FBAR if:
- They have a financial interest in, or signature or other authority over, one or more foreign financial accounts, and
- The combined value of all foreign financial accounts exceeds $10,000 at any time during the calendar year
For FBAR purposes, a U.S. person may include:
- U.S. citizens
- U.S. residents
- Certain domestic entities, such as corporations, partnerships, LLCs, trusts, and estates
It’s important to note that you may still be considered a U.S. person for FBAR reporting purposes even if you live outside the United States. For more information, see our guide to filing taxes as a U.S. citizen living abroad.
Depending on the total amount of money held in your foreign bank account, you will be expected to report the details of your foreign accounts to the Financial Crimes Enforcement Network (FinCEN) each year. Typically, if your accounts hold $10,000 or more combined at any point in the year you are expected to report.
If you’re required, you will submit a Foreign Bank and Financial Accounts Report, otherwise known as an FBAR, to document and declare money held in foreign banks or financial institutions. The FBAR is an informational report filed separately from your tax return using Form 114.
However, even if your foreign accounts did not earn taxable income during the year, you may still be required to report them on an FBAR.
What contributes to the $10,000 FBAR reporting threshold?
The $10,000 FBAR reporting threshold is based on the aggregate value of all your foreign financial accounts combined, not the balance of a single account. This means you must add together the highest value of each reportable foreign account during the year. If the combined total exceeds $10,000 at any point during the calendar year, you may be required to file a Foreign Bank Account Report (FBAR), even if none of the individual accounts held more than $10,000 on their own.
Common reportable foreign financial accounts include:
- Foreign checking and savings accounts
- Foreign brokerage and investment accounts
- Foreign retirement or pension accounts (in some cases)
- Mutual funds or similar pooled investment accounts held outside the U.S.
- Certain foreign life insurance policies with a cash value
Accounts that are generally not reportable include:
- Foreign real estate held directly in your name
- Precious metals held directly outside a financial account
- Foreign social insurance programs
- Financial accounts maintained on U.S. military banking facilities
When determining whether you exceed the threshold, account balances denominated in a foreign currency must be converted to U.S. dollars using the appropriate exchange rate. The converted U.S. dollar values are then used to calculate the aggregate account balance for FBAR reporting purposes.
When is the FBAR filing deadline?
Your annual FBAR report is due to the Financial Crimes Enforcement Network (FinCEN) by April 15th. It is important to point out that although the IRS enforces the reporting and acts as the authority over Form 114, the form is reported to FinCEN, not to the IRS. This also means you do not file your FBAR with your tax return.
If you cannot file your FBAR by the April 15th deadline, the report allows an automatic six-month extension without request. The extension will allow you until October 15th to submit your report. Unfortunately, the automatic extension does not relieve you of penalties. You should still aim to file by the deadline, as filing the report past the deadline may subject you to late filing penalties.
How to file an FBAR (Form 114)
The FinCEN requires FBARs to be e-filed through the BSA E-Filing System, not with your tax return. You can access Form 114 and file it online here. You will need your personal information, the bank’s information, and details of each foreign account to complete the form.
What are the penalties for not filing an FBAR?
There can be penalties for not filing Form 114 when required. Failing to file this form when required can result in civil penalties, which can vary depending on the circumstances and the amount of unreported foreign financial assets.
For example, if you knowingly did not file complete and accurate information on the FBAR (a willful violation), you will receive a much greater fine than if an examination determines you had reasonable cause for filing a late or incomplete report (non-willful violation).
If you realize you should have filed an FBAR in a previous year, you can file the report late and should file it as soon as possible to minimize potential penalties. We list the potential penalties in the chart below.
| Violation Type | Current Inflation-Adjusted Penalty Amount (2026) | How It Is Applied |
| Non-Willful | Up to $16,536 per annual report | Capped per year/form (unless reduced or waived via reasonable cause or amnesty programs) |
| Willful | The greater of $165,353 or 50% of the account balance at the time of the violation | Applied per account, per year for up to a 6-year statute of limitations |
Do I pay taxes on money in foreign financial accounts?
No, you are typically not taxed on money in a foreign account. The FBAR is an informational return, not a tax return. Filing this form will not result in a tax bill. Once a transaction or transfer occurs, the funds will be reported to the IRS if they are considered taxable on Form 2555. Although this income may not be taxable, you may still have to declare these assets on your tax return using Form 8938, Statement of Specified Foreign Financial Assets.
See more on claiming foreign earned income with TaxSlayer here.
Do I need to file Form 114 and Form 8938?
You may need to file both Form 8938 and Form 114. Although both forms are used to report foreign financial assets, the documents are submitted to different entities.
Form 8938, Statement of Specified Foreign Financial Assets is an informational form reported to the IRS along with your tax return.
Form 114, Report of Foreign Bank and Financial Accounts (FBAR) is a reporting document submitted annually to the Financial Crimes Enforcement Network (FinCEN). This report is filed separately from your tax return.
You should review the filing requirements and thresholds for each form to determine if you must file one or both forms. Because the forms are sent to different organizations, they do not cancel each other out.
