What is an FBAR and who needs to file?

An FBAR (FinCEN Form 114) is required for any US person — citizens, green card holders, and residents — who has foreign financial accounts that together exceeded $10,000 at any point during the calendar year. This includes Americans living abroad, immigrants maintaining accounts in their home country, and dual citizens. If the total across all your foreign accounts hit $10,000 for even one day, you're required to file.

What's the penalty for not filing?

Non-willful failure to file carries a penalty of up to $16,536 per account, per year. Willful failure can result in penalties up to $165,353 or 50% of the account balance, whichever is greater. Criminal penalties can include up to 5 years imprisonment. The good news: the IRS rarely penalizes taxpayers who come forward voluntarily with non-willful violations.

When is the FBAR deadline?

The FBAR is due April 15 each year, with an automatic extension to October 15. No extension request is needed — it applies automatically. For the 2025 tax year, the October 15, 2026 extension deadline is the current active deadline. We recommend filing as early as possible to stay ahead of the deadline.

How does the FinCEN submission work?

We generate your completed FinCEN Form 114 — both a FinCEN-compliant XML for submission and a PDF copy for your records. We walk you through uploading to the BSA E-Filing system, the same portal CPAs and tax professionals use. The upload takes about 2 minutes. Once submitted, you get a BSA tracking ID as proof of filing, saved in your dashboard alongside your PDF receipt.

How is my data protected?

Your SSN and account numbers are encrypted with AES-256-GCM before they're stored. The encryption architecture means we cannot access your sensitive data in plain text. All traffic uses TLS. Bank statement uploads are encrypted at rest and deleted after data extraction is complete.

What if I have accounts in multiple countries?

You can add as many accounts as you need — there's no per-account charge. We handle currency conversion automatically using Treasury Department exchange rates for the reporting year. Five accounts across three countries is the same $29.

Can I file for previous years?

Yes. You can file for any year going back 6 years. Each year is a separate filing. If you have multiple years of unfiled FBARs, we recommend consulting a tax professional about the Streamlined Filing Compliance Procedures before filing — it can protect you from penalties.

How is this different from using a CPA?

A CPA typically charges $200–500 for FBAR preparation. For straightforward filings, the work involved is primarily data entry — your name, bank details, and account balances. We handle that same process for $29 in about 12 minutes, with bank-grade encryption. For complex situations like delinquent filings, FATCA Form 8938, or tax treaty issues, a CPA is the right choice.

Can I file myself for free on the BSA site?

Yes, the BSA E-Filing system at FinCEN is free and open to the public. It's a functional but dated system — no save-and-resume, no currency conversion, and no error checking before submission. Most filers report it takes 45–90 minutes. FBAR File provides a modern interface with automatic currency conversion, error detection, and the ability to save your progress for $29.

Is my data really safe?

We use AES-256-GCM encryption — the same standard used by the US government for classified information. Your SSN and account numbers are encrypted before they're written to our database, using a key derived from your account. We cannot read them in plain text. Bank statement uploads are encrypted at rest and automatically deleted after data extraction.

10 Common FBAR Filing Mistakes (and How to Avoid Them)

1. Using the Wrong Exchange Rate

The mistake: Converting foreign currency to USD using Google, your bank's rate, or the rate on the day of maximum balance.

The rule: Use the Treasury Department's end-of-year exchange rate (December 31 rate for the reporting year). Not your bank's rate, not the spot rate, not the rate on the date of maximum balance.

FBAR File automatically applies the correct Treasury rate for the tax year you're filing.

2. Reporting Year-End Balance Instead of Maximum Value

The mistake: Entering your December 31 balance.

The rule: Report the highest balance the account reached at any point during the calendar year. Check all 12 monthly statements and use the highest figure. If your account hit $50,000 in March but ended the year at $5,000, report $50,000.

3. Forgetting About Closed Accounts

The mistake: Skipping an account because you closed it mid-year.

The rule: If the account was open at any point during the calendar year, it must be reported. Closed in January? Report it with the maximum value from January.

4. Not Including Joint Accounts

The mistake: Assuming your spouse handles joint accounts or that you only report your "half."

The rule: Report the full maximum value of every joint account where you have a financial interest. Both spouses may have a filing obligation if both are US persons.

5. Confusing the $10,000 Threshold

The mistake: Thinking each account must independently exceed $10,000.

The rule: The $10,000 threshold is the aggregate of all foreign accounts combined. Five accounts with $2,500 each = $12,500 total. You file.

6. Leaving Out Non-Bank Accounts

The mistake: Only reporting bank accounts and forgetting about brokerage accounts, insurance policies with cash value, or retirement accounts abroad.

The rule: All "financial accounts" at "financial institutions" outside the US must be reported. This includes securities accounts, mutual fund accounts, and certain insurance policies.

7. Wrong Account Number Format

The mistake: Including dashes, spaces, or country prefixes inconsistently.

The rule: Enter the account number as your bank identifies it. For IBANs, include the full IBAN. Consistency matters — use the same format your bank uses on statements.

8. Filing Late Without Realizing It

The mistake: Assuming the FBAR follows the same extension as your tax return.

The rule: The FBAR deadline is April 15, with an automatic extension to October 15. This is separate from your tax return extension. If you filed a tax extension to October 15 and thought that covered the FBAR — it did by coincidence, but not by rule.

9. Not Filing Because Balances Were "Close" to $10,000

The mistake: Estimating account values and deciding you're under the threshold without checking actual statements.

The rule: Calculate precisely. Get your statements. Factor in salary deposits, incoming transfers, and temporary spikes. Many filers who think they're under $10,000 discover they exceeded it for a day or two during the year.

10. Assuming Your CPA Filed It

The mistake: Assuming FBAR filing is included in your tax preparation.

The rule: The FBAR is a separate filing with a separate agency (FinCEN, not the IRS). Many CPAs charge separately for FBAR preparation, and some don't handle it at all. Always confirm explicitly.

The Fix

Most of these mistakes come from not understanding how the FBAR differs from a tax return. It's a separate form, filed with a separate agency, using separate rules. FBAR File is designed to prevent these errors — we validate your data, apply correct exchange rates, and generate a form that FinCEN accepts.