Do You Need to File an FBAR? What Every U.S. Taxpayer Abroad Should Know

If you are a U.S. citizen or resident with money in bank accounts outside the United States, you may have an extra reporting requirement: the Report of Foreign Bank and Financial Accounts (FBAR).

Many people miss this obligation, especially when they’re new to living or working abroad — but the penalties for failing to file can be steep. Here’s what you need to know.

What Is the FBAR?

The FBAR (FinCEN Form 114) is a report that discloses foreign bank and financial accounts to the U.S. Treasury. It’s filed online through the BSA E-Filing System with FinCEN (not with the IRS).

The purpose: to ensure transparency and compliance for U.S. taxpayers with money abroad.

Who Must File an FBAR?

You must file if:

• You are a U.S. citizen, resident, or U.S. entity (like a corporation, partnership, or LLC), and

• The combined value of your foreign financial accounts exceeded $10,000 at any point during the calendar year (even if only for a day!)

This includes:

• Personal accounts

• Joint accounts (even if the money isn’t yours)

• Accounts where you are a legal representative or have signature authority

If your name is on the account, chances are you need to report it.

When Is the FBAR Due?

• Annual due date: April 15 (same day as tax returns)

• Automatic extension: October 15 (no request needed)

  
  

For 2024 FBAR filings, the final deadline is October 15, 2025.

What Happens if You Don’t File?

FBAR penalties depend on whether the violation is non-willful or willful:

• Non-willful violations (mistakes/oversights): Up to $10,000 per account, per year, adjusted for inflation (~$16,000 in 2024).

• Willful violations (knowingly not filing): The greater of $100,000 or 50% of the account balance.

• Criminal penalties are also possible in extreme cases.

The good news? If you have reasonable cause and file promptly once you realize the mistake, penalties may be reduced or waived.

How to File the FBAR

1. Gather your account information:

   • Bank name, address, account number, and maximum value during the year

2. Go to the FinCEN BSA E-Filing System

3. File FinCEN Form 114 electronically

Want more guidance? Check out our Tax Services for Expats & Digital Nomads page for free resources tailored to global professionals.

Why Work with a Professional

Filing an FBAR may sound simple, but it can quickly get complex if:

• You have multiple accounts across countries

• You share joint accounts with family or business partners

• You’re unsure how to calculate the maximum value

  
  

At Be Well & Co. Financial Consulting, we provide professional FBAR filing services so you don’t have to worry about mistakes or penalties. We’ll guide you through the process and ensure everything is submitted on time and accurately.

Book FBAR Support

Bottom Line?

If your foreign accounts topped $10,000 at any point this year, don’t ignore the FBAR. Filing on time is the easiest way to avoid costly penalties and gain peace of mind.

At Be Well & Co., we’re here to help you align your finances with your values — and stay compliant no matter where in the world you live.

This reminder is provided for educational purposes only and does not constitute financial, legal, or tax advice. Please consult with a qualified professional about your specific situation.

Written by Courtney A. Mallow, IRS-Registered Tax Preparer, Certified Fraud Examiner (CFE), Certified Personal Financial Wellness Consultant℠, and Founder of Be Well & Co. Financial Consulting. Courtney helps self-employed individuals, people living abroad, and global professionals align their money with their values.