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.

FBAR Penalties

The penalties are intentionally severe. Here's the structure, and how to come into compliance if you're behind.

Non-Willful Violations

You didn't know about the requirement or made an honest mistake.

$16,536

Maximum penalty per account, per year (adjusted annually for inflation)

Each unreported account for each year is a separate violation. Example: 3 unreported accounts for 2 years = up to $99,216 in potential penalties.

Willful Violations

You knew about the requirement and chose not to file.

$165,353

Or 50% of the account balance, whichever is greater

5 years

Maximum criminal imprisonment, plus up to $250,000 in fines

What Makes a Violation "Willful"?

Courts have found willfulness when taxpayers:

Previously filed FBARs but stopped
Failed to disclose foreign accounts to their tax preparer
Used foreign accounts to hide income
Were informed of the requirement and still didn't file
Checked "No" on Schedule B when they had foreign accounts

"Willful blindness" — deliberately avoiding learning about the requirement — can also qualify.

Relief Options

If you have unfiled FBARs, several paths exist to come into compliance with reduced or eliminated penalties:

Streamlined Foreign Offshore Procedures

For non-willful taxpayers living abroad. Typically results in zero penalties. Requires 3 years of amended tax returns and 6 years of FBARs.

Streamlined Domestic Offshore Procedures

For non-willful US-resident taxpayers. 5% miscellaneous offshore penalty on the highest aggregate balance.

Delinquent FBAR Submission Procedures

File late FBARs with a statement of reasonable cause. Best for taxpayers who properly reported all income but missed the FBAR filing.

Voluntary Disclosure Practice

For willful violations. Reduces criminal exposure in exchange for full disclosure and payment of civil penalties.

The simplest way to avoid penalties: file on time

12 minutes. $29. FinCEN-ready in three steps.

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